Odisha Govt. Clarifies Banking Restrictions After Removing Private Banks

The Odisha government has clarified the implications of its decision to remove HDFC Bank, ICICI Bank, and Axis Bank from its empanelled list. The clarification from the Finance Department specifies that the removal order doesn’t affect certain account types. This includes specific accounts like SNA accounts, payment aggregator/gateway accounts, agency accounts for state dues, and NPS/Pension trustee accounts currently managed by the three banks. Though existing accounts of state organizations are permitted to remain with the banks, the government has placed a hold on opening new accounts for these purposes. The initial removal was due to performance issues in key government schemes and overall banking performance over the last two fiscal years. State departments and related entities were instructed to close relevant accounts and transfer balances, excluding fixed deposits, which will be moved upon maturity with earned interest.