Retrogressive Step of Maharashtra Government to allow PSU accounts in Private Banks

Bureau,Odishabarta

DELHI:It refers to decision of Maharashtra cabinet allowing government offices, Public Sector Undertakings (PSUs) and state-run corporations to use private banks for limited purposes, after it imposed a total ban on any such banking with private banks in March 2020 with effect from 01.04.2020 following crisis in several private banks like Yes Bank, PMC Bank etc apart from allegations of favouritism in respect of government-accounts to be in a particular private bank where wife of a former political ruler was  holding a senior post.

Rule should be that all bank-accounts of government offices, Public Sector Undertakings (PSUs) and state-run corporations (both central and state governments) must be compulsorily only in public sector banks. Rather their employees should also have their salary-accounts in any of the branch of same public-sector bank for getting salaries through simple bank-transfer rather than requiring NEFT, RTGS or any other mode of electronic fund-transfer. Government-employees thereafter may shift funds to any bank of their choice.

Using public-sector banks will increase deposits and profitability of public-sector banks and ensure safety of public-money. Maharashtra has otherwise also a unique facility of having the smallest public-sector bank i.e. Bank of Maharashtra having widespread network of branches all over Maharashtra. Bank of Maharashtra was not merged with any larger public-sector bank only to retain its identity as a state-specific bank in Maharashtra state only.

Input;Mr Subash