Haryana govt to stay away from private banks

Core Viewpoint - The Haryana government has implemented stricter regulations for managing public funds and banking relationships, emphasizing the use of nationalized banks and enhanced oversight measures [4][6]. Group 1: New Banking Regulations - Administrative secretaries are now authorized to approve the opening of accounts for government schemes only in nationalized banks operating within the state [4][6]. - Any proposal to open an account with a private bank must include detailed justification and full particulars of the scheme, with prior approval from the finance department required [4][6]. - Accounts opened without following the prescribed procedures will be deemed irregular and subject to immediate closure [4][6]. Group 2: De-empanelment of Banks - The finance department has de-empaneled IDFC First Bank and AU Small Finance Bank from all state government business, prohibiting any government funds from being parked, deposited, or transacted through these banks [4][6]. Group 3: Fund Management Instructions - Departments are instructed to place surplus funds in flexible or fixed deposits that offer the highest available interest rates, rather than keeping them in low-yield savings accounts [5][6]. - Monthly reconciliation of all fixed deposit and bank accounts is mandated to identify discrepancies, with a deadline set for March 31, 2026, for completing this reconciliation [5][6]. - A certified compliance report must be submitted to the finance department by April 4, 2026, with administrative heads held personally responsible for adherence to these directives [5][6].