PMC scam fallout: Odisha govt cautions departments against depositing money in banks

Bhubaneswar: Raising concerns about the financial health of banks, the State government has directed all the departments to take precaution while depositing government funds in any bank.

In a letter to all the departments on October 22, Principal Secretary of Finance Department AKK Meena said that the departments, PSUs or State agencies have to be very careful while keeping deposits in any bank and proper enquiry must be done about the financial health of the concerned bank for making any deposit. “It shall be the personal responsibility of the concerned authority for such deposit,” the letter read.

The Secretary further asked the departments to utilise the government funds directly from treasury through Integrated Financial Management System (IFMS) instead of parking the amount in any bank account. The letter also mentioned that withdrawal of money from treasury without sufficient grounds and depositing the same in bank account shall be construed as a financial irregularity.

Worth mentioning, each depositor in a bank is insured up to maximum of Rs 1 lakh for both principal and interest amount held by him.

The Finance Secretary has written the letter to departments asking them to keep in mind the norm that in the eventuality of closure of any bank the deposits are insured only up to Rs 1 lakh and not beyond that.

The State government has empanelled 17 PSU banks, eight private sector banks, one small finance bank, two regional rural banks and one co-operative bank for the purpose of handling business and deposits of State PSUS, State Level Autonomous Societies for the year 2019-20.

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