Bhubaneswar: The Odisha government on Tuesday issued a clarification regarding removal of three major private sector banks – HDFC Bank, ICICI Bank and Axis Bank- from its empanelled list for handling state funds over poor performance.
The notification issued by the Finance Department stated that this directive is not applicable in case of SNA bank accounts, payment aggregator/payment gateway bank accounts, agency bank accounts (for collection of state government dues) and NPS/Pension trustee bank accounts currently maintained in these banks.
“While the above-mentioned bank accounts of state government organisations shall continue in these three banks, new accounts for these purposes shall not be opened in these three banks till further order,” it added.
Also Read: Odisha Govt Removes 3 Pvt Banks From Empanelled list
On Saturday, the three leading private banks were removed from the empanelled list due to continued poor performance in some flagship government schemes and unsatisfactory general banking parameters over the last two financial years. All state government departments, directorates, heads of departments (HoDs), agencies, public sector undertakings (PSUs), societies, and universities were asked to immediately close all savings, current or other running accounts maintained with these banks and transfer the balances to accounts in other empanelled banks without delay.
However, fixed or term deposits in these banks were to be left untouched and shifted with accrued interest to other empanelled banks upon maturity.
