Bhubaneswar, June 24: Following the removal of three private banks from its empanelled list, the Odisha government has issued a clarification regarding the closure of bank accounts maintained by its departments and agencies.
In an official notification, the state’s Finance Department explained that the directive to close accounts in HDFC Bank, ICICI Bank, and Axis Bank does not apply to certain types of accounts. These exemptions include Single Nodal Agency (SNA) bank accounts, Payment aggregator/payment gateway bank accounts, Agency bank accounts used for collecting state government dues and NPS/Pension trustee bank accounts.
As a result, Odisha government departments and organisations can continue operating these specific accounts in the three banks. However, no new accounts of these types are to be opened in these banks until further notice.
The clarification comes after the Finance Department’s June 21 order, which de-empanelled HDFC Bank, ICICI Bank, and Axis Bank due to their poor performance in flagship government schemes and failure to meet general banking standards.
The order instructed all departments to immediately close their savings, current, and other active accounts in these banks and transfer the balances to other empanelled banks. However, departments were told not to prematurely close fixed or term deposit accounts. Instead, they are to transfer the funds to empanelled banks once those deposits mature.
The government’s move aims to ensure better financial oversight and improved banking services for the implementation of its schemes.
