Embargo lifted on grant of govt business 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. 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. "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.

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. @FinMinIndia @DFS_India

— NSitharamanOffice (@nsitharamanoffc) February 24, 2021

"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.