Finance minister Nirmala Sitharaman in a tweet mentioned that private banks can now be equal companions in growth of the Indian financial system, furthering government social sector initiatives, and enhancing buyer comfort.
“Embargo lifted on grant of Govt enterprise to private banks. All banks can now take part,” she mentioned in a tweet.
In a press release the finance ministry mentioned that the government has conveyed its choice to the Reserve Bank of India or RBI. At current moreover state run lenders just a few chosen private sector banks are allowed to conduct government related banking transcations.
“With the lifting of the embargo there may be now no bar on RBI for authorisation of private sector banks for government buisness together with government company buisness, ” the assertion famous.
Government related banking transcations embody taxes and different income fee facilties, pension funds and small financial savings schemes.