The embargo lifted government business authorizations for private banks. 

 

 

♦ The government lifted the embargo on banks in the private sector (only a few were previously allowed) to conduct government-related banking transactions, such as tax and other facilities for paying income, pension payments, small savings schemes, etc. 

♦ This phase is expected to increase customer convenience, stimulate competition, and boost customer service standards performance.

♦ This step is expected to enable private sector banks at the forefront of the absorption and deployment of the new banking industry technology and innovation to become equal partners in India`s economic growth and social sector initiatives by the government. 

♦ The Reserve Bank of India no longer forbids private sector banks (along with public sector banks) from approving Government business, including Government agency business, as a result of the lifting of the embargo.