The Kerala Assembly witnessed a walkout by the Opposition Left Democratic Front on what it alleged as moves to route more and more Government business through private banks.

The Opposition sought leave for moving an adjournment motion on the issue, which the Speaker, Mr G. Karthikeyan, refused, after the Finance Minister, Mr K. M. Mani, made a statement.

GOVT ORDER

Earlier, the Minister had reiterated in the House that only public sector banks would be allowed to carry out Government business. This could not convince the Opposition, which walked out of the House.

The Opposition ire was directed at the Government Order G.O. (Rt) No. 7013/2011/Fin dated September 15 last.

The order said that in consideration of requests from various private sector banks, the Government of India has clarified that the autonomous/statutory bodies under its various departments can avail of banking services from any of the three private sector banks, namely ICICI Bank, HDFC Bank and Axis Bank for meeting their banking requirements.

HDFC BANK FEELER

The HDFC Bank has approached the State Government, expressing its interest for providing banking services to the State Government organisations and has requested empanelment of the bank for Government business.

The Government, having examined the matter in the light of the instructions issued by the Ministry of Finance is of the view that autonomous/statutory bodies under the State Government can avail of banking services from the three private sector banks for meeting their banking requirements.

ECONOMY OF SERVICE

These would include handling of transactions pertaining to Government grants and funds generated by them from their own resources.

Economy of service, trustworthiness and quality of service provided should be the prime considerations while opting for banking facility from these Banks.

The institutions/bodies availing of the services of these private banks should follow these criteria scrupulously, the order said.

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