The federal government has, with fast impact and till additional orders, eliminated IDFC First Financial institution and AU Small Finance Financial institution from its panel of accredited banks for endeavor authorities enterprise.
In a round dated February 18 addressed to heads of departments, state-run items and banks working in Haryana, the extra chief secretary of Haryana authorities authorised administrative secretaries to approve the opening of financial institution accounts for schemes, initiatives and programmes solely in nationalised banks working within the state.
Any proposal to open an account with a company or personal sector financial institution should be submitted to the finance division with detailed justification. Any account opened with out following this process might be handled as irregular and accountable for fast closure, stated the round seen by ET.
The federal government has additionally de-empanelled IDFC First Financial institution and AU Small Finance Financial institution from endeavor authorities enterprise with fast impact till additional orders.
“No authorities funds shall be parked, deposited, invested, or transacted via these banks. All departments will take fast motion for switch of balances and closure of accounts maintained with these banks,” the round stated.
IDFC First Financial institution and AU Small Finance Financial institution didn’t reply to queries.The state stated it had come to the discover of the finance division that sure banks weren’t adhering to prescribed situations for mounted deposits. Regardless of directions to put surplus funds in versatile or higher-yielding FD devices, balances have been retained in financial savings accounts, leading to decrease returns and potential monetary loss to the exchequer.
