Following the removal of three major private sector banks from its empanelled list, the Odisha government issued a clarification. The Finance Department stated that the directive does not apply to specific types of accounts, including SNA bank accounts, payment aggregator/gateway accounts, agency bank accounts for state dues collection, and NPS/Pension trustee accounts currently held with these banks. While existing accounts of state government organizations can remain with the three banks, new accounts for these purposes are prohibited until further notice. The initial decision to remove HDFC Bank, ICICI Bank, and Axis Bank stemmed from their poor performance in several flagship government schemes and unsatisfactory banking parameters over the past two financial years. All state government departments were instructed to close savings, current, and other running accounts and transfer balances to other empanelled banks immediately. However, fixed or term deposits were to remain untouched and transferred upon maturity with accrued interest.
