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Now, Private Banks Allowed To Participate in Govt Business


Mar 17, 2021, 16:01 IST
New Delhi: All banks will now be allowed to conduct government-related transactions. Finance Minister Nirmala Sitharaman made the announcement during Rajya Sabha Question Hour on Tuesday.
She said that the decision was taken with the objective of providing equal opportunities to all banks. However, she clarified that new banks would be allowed to carry out government-related activities in accordance with Reserve Bank of India s (RBI) regulations and guidelines.
The RBI explained that the government had made the same point clear. These include activities such as tax collection, pension payments, and the management of small savings plans. There are already some private sector banks operating in the country. ....

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