The Haryana Government has announced the new State policy on interface with banks keeping in view the changing scenario of banking sector.
“All existing bank accounts opened need to be consolidated into one or two major accounts by March 31, 2018 definitely with the approval of Finance Department. Till then, banking with the existing banks will be continued subject to revised policy,” said Haryana Finance Minister, Capt Abhimanyu on Friday.
Capt Abhimanyu said that the revised policy has been formulated for dealing with banks by various Government organisations so as to obtain optimum benefit of the schemes, minimize cost and bring uniformity and transparency in dealing with financial institution.
He said that as per guidelines formulated for placing of deposits and borrowing up to Rs 10 crore for short term period up to three months, the organisations might invite quote from the respective empanelled banks through mails. The quote should be given within 24 hours of the issuance of mail. It should be ensured that the quotations should not be called a day before any holiday, said the Finance Minister. He said that the quotations received should be short-listed and the bank providing maximum rate of interest be selected for placing deposit or minimum rate of interest for borrowing/loan. A decision will be taken by the competent authority within two days of the receipt of the quotation from the bank.
The total deposits placed and the borrowing made by different organisations during a period of one month will be consolidated by Finance Department in the Department of Institutional Finance and Credit Control (IFCC) for the information of the Government by the 3rd day of the subsequent month indicating the name of the Bank and amount deposited/borrowed, said he.
All existing bank accounts opened need to be consolidated into one or two major accounts, for which approval of IFCC is to be invariably taken. No Government Department can draw money to keep it in the bank account without it being actually utilised for the purpose for which it has been withdrawn, said Capt. Abhimanyu.
He further said that in case any organisation withdraws money and the money remains idle and, unless specifically permitted, action will be initiated. In case, due to any reason the amount drawn remains unutilized, then the organisation has to deposit the same along with the interest for the period for which it remained unutilized at the MClR rate prevailing for the bank in which the deposit had been kept and for the period it remained idle.
If the Government funds are transferred to organisations other than the Government Departments from the State Budget, then the funds need to be utilized immediately. Unutilized funds, unless specifically permitted, will have to be deposited back with interest to be charged, the Minister said.
If a Department/organisation fails to deposit the amount within the stipulated time and it is subsequently known to have been kept idle in any bank account, penal interest at the rate of 2 per cent for which the amount remained idle will be deducted in future releases to those departments and organisations. No organisation should withdraw funds to keep them idle in any bank account without specific approval, added he. Capt. Abhimanyu also said prior approval of IFCC for signing any MOU with any Financial Institutions/E-wallet Companies etc. will invariably be required to be taken, in the absence of which all cases of financial assistance to that organisation would be put to halt.