In a decisive move aimed at financial accountability and better implementation of flagship schemes, the Government of Odisha has de-empanelled HDFC Bank, ICICI Bank, and Axis Bank from conducting business on behalf of the State Government and its supported organisations.
The order, issued by the Finance Department (Memo No. 18560), cites consistently poor performance in government schemes and weak general banking parameters as the reason behind the action. This decision follows an extended review of the banks’ performances over the past two fiscal years.
Effective immediately, all state departments, directorates, public sector undertakings (PSUs), societies, and universities have been directed to close their operational accounts in the three private banks and transfer funds to other empanelled banks. The move, however, exempts ongoing fixed deposits, which can be allowed to mature before transferring accrued funds.
The Finance Department has emphasised that non-compliance with this directive will be taken seriously and has instructed widespread dissemination of this order across departments. The decision may be reviewed if the concerned banks show substantial improvement within the current financial year.
This significant reshuffle signals the state’s intent to align financial partners strictly with performance metrics in implementing public welfare schemes and efficient fund management.
