The Haryana government has directed all its departments, boards, corporations and state-run entities to open bank accounts and do banking exclusively with public sector banks. Any department seeking to open or operate an account with a private sector bank will require prior approval from the state’s Finance Department.
This decision has been taken by the Government due to Rs.590 crore fraud by IDFC First Bank in the accounts of Haryana Government.
The government has, with immediate effect and until further orders, removed IDFC First Bank and AU Small Finance Bank from its panel of approved banks for undertaking government business.
As per circular released by Haryana Govt, all government departments will open bank accounts for schemes, projects and programmes only in nationalised banks operating in the state.
Any proposal to open an account with a corporate or private sector bank must be submitted to the finance department with detailed justification. Any account opened without following this procedure will be treated as irregular and liable for immediate closure.
Public Sector Banks are highly trusted banks in India. PSU Banks handle almost all the government transactions and have been trusted by public for more than 100 years. Experts say that government should keep its funds exclusively with public sector banks because the working procedure in these banks is better than that of private banks. The staff in PSU banks are more accountable to their mistakes as most of the staff is permanent.
