The Maharashtra government has ordered all its departments, state PSUs and autonomous bodies to shift their accounts from private to public sectors banks by the month-end.
To ensure safety of public funds the government has ordered all salary, pension and other accounts to any of the 11 nationalised banks by April 1
The RBI had said that any large scale shift to public sector banks may destabilise the banking and financial sector.
The state government is justifying its moves on two counts. One- All central government schemes are to be routed through the nationalised banks, and two- the RBI had itself issued a directive on October 31, 2019 to switch accounts to nationalised banks.
