Bhubaneswar, June 23: In a major administrative decision, the Odisha government has disqualified HDFC Bank, ICICI Bank, and Axis Bank from managing state funds, citing poor performance in flagship government schemes and unsatisfactory banking services over the past two financial years.
The Finance Department, under the direction of Principal Secretary Saswata Mishra, issued a formal communication instructing all state departments, public sector undertakings (PSUs), universities, and associated agencies to immediately close all current, savings, and operational accounts in the three private banks. The directive mandates the transfer of funds to other banks that are currently empanelled with the state government.
However, the government has allowed existing fixed deposits in these banks to remain in place until their maturity to prevent financial loss through premature withdrawal. Upon maturity, departments have been instructed to transfer both the principal and accrued interest to the empanelled banks without delay.
The letter also contains a stern warning, stating that any failure to comply with the instructions will be treated seriously. The government’s move is aimed at enhancing the efficiency of fund management and ensuring better cooperation from banking partners in implementing key welfare schemes and financial services.
The Finance Department has asked all departments and affiliated bodies to circulate the directive widely and take prompt action to adhere to the new policy.
This decision underscores the Odisha government's growing emphasis on performance-based partnerships and accountability in public financial management.
