Centre lifts embargo on grant of govt businesses to private banks
The Centre on Wednesday lifted embargo on private sector banks for conducting of government-related banking transactions. These include taxes and other revenue payment facilities, pension payments and small savings.
"Embargo lifted on grant of Govt business to private banks. All banks can now participate. Private banks can now be equal partners in development of the Indian economy, furthering Govt's social sector initiatives, and enhancing customer convenience," finance minister Nirmala Sitharaman's officer tweeted, announcing the same.
The department of financial services said that the decision will enhance customer experience. It also said that private banks will be equal partners in government's economic and social agenda.
"Private sector banks, which are at the forefront of imbibing and implementing latest technology and innovation in banking, will now be equal partners in development of Indian econonmy," a government release said.
"With the lifting of embargo, there is now no bar on RBI for authorisation of private sector banks (in addition to public sector banks) for government business, including government agency business. The government has conveyed its decision to RBI," the release further said.