All personal banks can get govt enterprise, ‘embargo lifted’: FM Nirmala Sitharaman

Lifting the embargo on grant of presidency enterprise to personal banks, the federal government on Wednesday allowed all personal sector banks to take part in government-related enterprise like assortment of taxes, pension funds and small financial savings schemes.
At current, just a few giant personal sector banks are allowed to conduct government-related enterprise. “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 stated in a tweet. This step is anticipated to additional improve buyer comfort, spur competitors and better effectivity within the requirements of buyer providers, an official assertion stated.

Private sector banks, that are on the forefront of imbibing and implementing newest know-how and innovation in banking, will now be equal companions in improvement of the Indian economic system and in furthering the social sector initiatives of the federal government, the assertion stated. “With the lifting of the 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,” it added.