Haryana mandates exclusive banking with public sector banks, removes two private banks
Change
Haryana ordered all its departments, boards, corporations and state-run entities to bank only with public sector banks with immediate effect, removed IDFC First Bank and AU Small Finance Bank from its approved panel, and made any account with a private lender subject to prior approval by the Haryana Finance Department.
Why it matters
State units must now stop using de‑panelled private banks and immediately transfer balances and close accounts at those lenders. Departments are required to place surplus funds in approved fixed‑deposit instruments, perform monthly reconciliations of fixed deposits and promptly report serious discrepancies to the Finance Department.
Implications
- • Heads of departments must submit any proposal to open or operate accounts with a corporate or private bank to the Haryana Finance Department with detailed justification and full account particulars.
- • Finance teams in departments, boards, corporations and state-owned enterprises must transfer balances and close accounts maintained with IDFC First Bank and AU Small Finance Bank immediately.
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Source
Topics
Regulatory Actions Compliance Banking Regulation Financial Services