The central government has lifted the official ban on private sector banks on government-related bank transactions (tax and other revenue payment facility, pension payment and small savings). This information was given by the Department of Finance Services on 24 February 2021. Earlier, only a few private sector banks were allowed for these services.
The central government’s decision has also been conveyed to the Reserve Bank of India (RBI). After this decision of the government, consumers will get better services and facilities. Finance Minister Nirmala Sitharaman said that private banks will also be partners in the social and financial inclusion schemes of the government.
Finance Minister Nirmala Sitharaman also tweeted about this. She said that private banks will now become equal partners in the development of the country along with government banks. The ban on government business on private banks was lifted. Consumers will get better services and facilities. Private banks will also be partners in the social and financial inclusion schemes of the government.
