Punjab has de-empanelled HDFC Bank due to insufficient cooperation and failure to execute orders.
This decision follows the Punjab government’s recent directive to various departments to return the funds allocated to them back to the state treasury in order to alleviate the financial shortfall.
On Tuesday, the Punjab government officially removed HDFC Bank from its panel, citing a lack of “cooperation” and the bank’s inability to “implement” orders for executing “certain time-bound transactions”.
An order issued by the Secretary of Expenditure and Director of Institutional Finance and Banking in Punjab instructed all financial commissioners, principal secretaries, administrative secretaries of the Punjab government, heads of state government departments, divisional commissioners, deputy commissioners, and the convener of the state-level bankers committee to cease all business dealings with HDFC Bank.
“Given that HDFC Bank has not collaborated with the state government in executing its orders for certain time-sensitive transactions, it has therefore failed to comply… In light of these circumstances, it is not advisable to engage in any government business with HDFC Bank. Consequently, HDFC Bank is hereby de-empanelled, and the revised list of empanelled banks is attached,” the order states.
Following the decision, the Finance Department has issued a list of banks authorised to carry out government transactions. These include:
Public Sector Banks:Â State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, UCO Bank, Bank of Maharashtra, Punjab & Sind Bank.
Private and Cooperative Banks:Â ICICI Bank, Axis Bank, IDBI Bank, Kotak Mahindra Bank, Yes Bank, IndusInd Bank, Federal Bank, Capital Small Finance Bank, AU Small Finance Bank, and Punjab State Cooperative Bank.
Regional Rural Banks: Punjab Gramin Bank
Central Bank of India is also on the approved list.
These banks have been directed to ensure full cooperation and adherence to government financial protocols.