New Delhi: Now all private sector banks will be able to conduct government related transactions such as tax and other revenue payment facilities, pension payments and small savings schemes etc. Earlier only a few banks were allowed. The government has lifted the ban on private sector banks linked to it. The government has issued a statement that the move is expected to increase customer convenience and competitiveness, and raise the standard of customer services.
The statement said that private sector banks, which are at the forefront of adopting and implementing the latest technology and innovation in banking, will now be equal partners in the development of the Indian economy and will further the government’s social sector plans. According to the statement, after the ban is lifted, there is no restriction by the RBI to authorize private sector banks for government business, including business of government agency. According to the Finance Ministry, it has informed the RBI about its decision.
