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Govt business to private banks too

KT NEWS SERVICE. Dated: 2/25/2021 12:13:43 PM

NEW DELHI, Feb 24: The finance ministry on Wednesday lifted the embargo on the private sector banks for the conduct of the government-related banking transactions such as taxes and other revenue payments, pension payments and small savings schemes.
"This step is expected to further enhance customer convenience, spur competition and higher efficiency in the standards of customer services," it said.
It said the 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.
With the lifting of the embargo, there is now no bar on RBI 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.