The State Government has decided to ensure that the net worth of banks empanelled for government banking transactions and placing of fixed deposits to be not less than ₹1,000 crore.
Primary condition for empanelment would forthwith be that the empanelled banks should reach at least 50 per cent of the lending target programmes sponsored by the government as per the State Credit Plan/Annual Credit Plan during the previous financial years. The empanelment would be for a period of three years and the empanelled banks should maintain minimum capital adequacy ratio at bank level and CD ratio in State level as prescribed by the Reserve Bank of India.
In the revised guidelines issued for empanelment of banks, Finance department special chief secretary K. Ramakrishna Rao said that the new guidelines and conditions were necessitated following the bifurcation of erstwhile Andhra Pradesh, merger of banks as per RBI guidelines, deregulation of banking sector as also the new schemes initiated by the government.
The banking institution concerned should be a public or private scheduled bank, regional rural bank and cooperative bank (excluding urban cooperative banks) to qualify to be designated as an empanelled bank by the government.
The performance of the bank should, in general, be satisfactory, particularly in the areas of NPA management, business growth, net profits and mandatory publishing of audited results.
The performance would be assessed by a screening committee appointed by the government in the Finance department through the State Level Bankers’ Committee.
The State-level screening committee would have Finance department special chief secretary as its chairman and Finance secretary and representative of SLBC as it members. The Additional/Joint/Deputy secretary of Finance department will be its convenor.
Performance of individual branches at the district level would be screened by a district-level committee headed by the District Collector. The committee at the district level would comprise district treasury officer and lead bank manager as its members.
The State-level screening committee would, however, take a final decision based on the merits of the case and circumstances.
“The bank should not be involved in misappropriation or misuse or interruption in banking transactions of the State Government. Opening of savings and current account and placing funds in fixed deposits shall be subject to following the guidelines issued by the RBI from time to time,” the order said.
No government departments or heads of departments or organisations or corporations or societies or grant-in-aid institutions or local bodies or district collectors and undertakings should have current/saving/fixed deposit accounts with more than three banks.
All the banks that have government accounts should upload the data in prescribed proforma of the State Government portal https: // ifmis.telangana.gov.in / bankdeposits by 10th of every month duly obtaining separate logins for each bank. Banks that have the government accounts and not having any banking transactions or not withdrawn/renewed fixed deposits for a period of more than three months have to specifically report to the government on the same portal.
