Big Setback For HDFC Bank, ICICI BANK And Axis Bank As Odisha Government Bars Them From Handling State Money | Economy News
New Delhi: The Odisha government on June 22 removed three major private sector banks—HDFC Bank, ICICI Bank, and Axis Bank—from its list of approved banks. The government said these banks did not perform up to the standards in important government schemes and did not meet general banking goals in the last two financial years.
A letter from the Finance Department, signed by Principal Secretary Saswata Mishra, told all government departments, agencies, PSUs, societies, and universities to immediately close all their accounts (savings, current, or any other) with these three banks. They must transfer the money to accounts in other approved banks as soon as possible.
However, if there are any fixed or term deposits in these banks, they do not need to be closed right now. Closing them early could mean losing interest. But once these deposits mature, the entire amount, along with the interest earned, must be transferred to another approved bank the letter added.
The letter also warned that not following these instructions will be taken very seriously. All government departments have been asked to make sure everyone under their control is aware of these new rules.
