New Delhi: Government transactions will not be limited to state-owned banks and a handful of large private banks. The transaction can be made in all private banks. Private banks can do business, starting with tax collection and paying pensions. This has been approved by the Union Finance Ministry. Finance Minister Nirmala Sitharaman tweeted the information today. “Private banks can be equally involved in the development of the Indian economy,” he wrote. This will make it easier for the public to campaign for government and social services. The ban on private banks over government transactions has been lifted. Now all private banks can participate in the process, the finance minister said. The Reserve Bank of India has been informed by the Ministry of Finance about the decision taken to allow private banks to conduct government transactions. No private bank will have to seek permission from the Reserve Bank for further government transactions. Private sector banks and agencies can also be dealt with in private banks. Taxes, revenue, payment facilities, pensions, low savings schemes, etc. come in the category of government transactions. The Sensex of the Bombay Stock Exchange closed at 50.62 points today, with a major increase of 1030 points after the news broke today.
