The Central government on Wednesday has lifted the embargo placed granting businesses to private banks, which is expected to enhance customer convenience, spur competition and higher efficiency in standards of customer services.
In a statement, the Department of Financial Services (DFS) said: "The Government has lifted the embargo on private banks (only a few were permitted earlier) for the conduct of Government-related banking transactions such as taxes and other revenue payment facilities, pension payments, small savings schemes, etc."
"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," it added.
The DFS further informed that with the lifting of the embargo, there is no bar on the Reserve Bank of India (RBI) for authorisation of private sector banks (in addition to public sector banks) for government business, including government agency business.
Meanwhile, taking to Twitter, Finance Minister Nirmala Sitharaman said: "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."
( With inputs from ANI )
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