PUBLIC SECTOR BANKS GAIN GROUND

It had come to the notice of the government that some ministries as well as entities under their control have transferred their entire business or a substantial part of the business to Private Sector Banks, to the virtual exclusion of Public Sector Banks. Bulk deposits should be placed with the banks conducting their regular business, the govt. and PSUs, have been directed by the govt. that;

• At least 60% of department/ ministry funds to be parked with PSBs
• Competitive bidding for bulk deposits to be discontinued
• Letter says PSBs have special role in advancing govt. policy
• No business to be conducted through private banks alone.