Private banks will be given government clearance, pension-tax transactions and will also run small savings scheme

The central government has lifted the ban on private banks doing official business. Finance Minister Nirmala Sitharaman tweeted this information on Wednesday. Sitharaman said in the tweet, Private banks can now become equal partners of public sector banks in the development of Indian economy.This will increase the scope of social welfare schemes of the government and will also increase the convenience of customers. With the removal of the ban on private banks from doing business in government, banking related government transactions like collecting taxes, revenue related transactions, pension payments and small savings schemes like Kisan Savat Patra (Small Savings Schemes) also have private banks. Investments can be made through this. RBI will also allow private banks to operate any other government business in the coming time. With this announcement by the Finance Minister, the Nifty Bank Index rose strongly and reached 36,493. Shares of private banks such as Axis Bank, ICICI and HchiFC rose by 4-5 per cent. The BSE Sensex also rose by 1050 points.