New Delhi: The Union government has finally lifted the embargo on grant of government business to private banks, enabling them to participate in all developmental activities in the country. Taking to Twitter, Union Finance Minister Nirmala Sitharaman announced on Thursday that “all banks can now be equal partners in development”.
“Embargo lifted on grant of Govt business to private banks. All banks can now participate. Private banks can now be equal partners in development of the Indian economy, furthering Govt’s social sector initiatives, and enhancing customer convenience,” Sitharaman said in a tweet.
Embargo lifted on grant of Govt business to private banks. All banks can now participate. Private banks can now be equal partners in development of the Indian economy, furthering Govt’s social sector initiatives, and enhancing customer convenience. @FinMinIndia @DFS_India
— NSitharamanOffice (@nsitharamanoffc) February 24, 2021
As a result, private banks can now carry out government-related banking transactions like taxes and other revenue payment facilities.
Notably, Nifty surged nearly 1.69 per cent to 36,493.80 and Sensex went up by 1.80 per cent right after Sitharaman’s announcement today, after trading hours were extended following a technical glitch at NSE.
Axis Bank was the top gainer in the Sensex pack, surging around 5 per cent, followed by HDFC twins, ICICI Bank, Bajaj Finance and SBI.