Haryana mandates exclusive banking with public sector banks
Change
Haryana directed all its departments, boards, corporations and state-run entities to bank only with nationalised public sector banks, required prior Finance Department approval for any private bank accounts, and immediately de‑empanelled IDFC First Bank and AU Small Finance Bank from government business.
Why it matters
Departments and state-run units can no longer open or operate accounts with private banks without submitting a detailed proposal and justification to the Finance Department. Accounts opened or operated outside the prescribed approval process will be treated as irregular and liable for immediate closure. Departments must also place surplus funds in fixed deposits per approved terms and perform regular reconciliations to verify bank compliance.
Implications
- • State departments' finance teams must transfer balances and close accounts at IDFC First Bank and AU Small Finance Bank immediately or the accounts will be treated as irregular and liable for closure.
- • Heads of departments and authorised administrative secretaries must submit any proposal to open or operate accounts with corporate or private sector banks to the Finance Department with full justification and account particulars, or the accounts will be irregular.
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