- Arts & Entertainment
- All Stories
Embargo on grant of Government business to private banks lifted
New Delhi, February 24, 2021
The embargo on private sector banks for the conduct of Government-related banking transactions such as taxes and other revenue payment facilities, pension payments, small savings schemes, and so on has been lifted.
Only a few private banks were permitted to conduct such Government-related transactions earlier.
"This step is expected to further enhance customer convenience, spur competition and higher efficiency in the standards of customer services. 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 the Indian economy and in furthering the social sector initiatives of the Government," an official press release said.
With the lifting of the embargo, there is now no bar on the Reserve Bank of India for authorization 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 added.