Bhubaneswar: Odisha govt removed three leading private banks from its empanelled list due to continued poor performance in some flagship govt schemes over the last two years.
In a letter to principal secretaries of all govt departments, finance department principal secretary Saswata Mishra said due to persisting poor performance in some flagship govt schemes over the last two financial years, coupled with discouraging general banking parameters, the three private banks are removed from the list of banks empanelled for handling business and deposits of the state govt and state govt supported organisations.
"All these organisations are directed to immediately close their savings bank or current and other running accounts maintained in these three banks and transfer the account balance to any new or existing account opened or maintained in any other empanelled bank," the letter read.
Mishra stated that, however, fixed deposits or term deposits currently maintained in these three banks shall not be closed now as it may lead to loss of interest due to premature closure. On maturity of these deposits, the entire deposit along with accrued interest shall be transferred to other empanelled banks.
"This instruction will be made effective prospectively from the date of issue of this letter. Non-compliance with these instructions will be viewed seriously. You are, therefore, requested to kindly circulate this letter to all state govt and state govt supported organisations coming under the administrative control of your respective department," the letter added.
