CHANDIGARH: In a sweeping move to tighten financial discipline and safeguard public funds, the Haryana government has made it clear that to open an account in a corporate or private sector bank by any government organization in future, prior approval from the Finance Department will be mandatory. All departments, boards, corporations, public sector undertakings (PSUs), universities, and autonomous bodies have also been directed to immediately transfer balances and close accounts maintained with the two banks including IDFC First Bank and AU Small Finance Bank. The decision forms part of a comprehensive revision of guidelines governing the opening and management of bank accounts by government departments and affiliated bodies. The move has come in the wake of the Rs 590-crore fraud involving Haryana Government accounts following alleged collusion between employees of the IDFC Bank and external parties. The state has already de-empanelled IDFC First Bank and AU Small Finance Bank from handling government business in the state with immediate effect. As per the detailed instructions issued by additional chief secretary (Finance), no government funds shall henceforth be parked, deposited, invested, or transacted through IDFC First Bank and AU Small Finance Bank until further instructions. The communication, marked as ‘urgent’ and ‘time bound,’ has been circulated widely to administrative secretaries, heads of departments, deputy commissioners, registrars of universities, divisional commissioners, and all public, private and small finance banks operating in Haryana. As per the directives, the department had to give detailed justification, specific reasons for not opting for a nationalized bank, and complete particulars of the proposed account or scheme in case of opening an account in private banks. Any bank account opened without following the prescribed procedure will be treated as irregular and liable for immediate closure. Heads of Departments and Chief Executives of Boards and Corporations will be held personally responsible for compliance. The Finance department has also flagged irregularities in the handling of fixed deposits by certain banks. It noted that in several instances, despite clear instructions to place funds in higher-interest fixed deposit instruments, banks retained the money in savings accounts, resulting in lower returns and financial loss to the government. For this, instructions have been issued ensure fixed deposits are made strictly as per approved terms, to regularly verify compliance with deposit instructions, reconcile fixed deposit and related bank accounts on a monthly basis, and report serious discrepancies immediately to the finance department. All departments, boards, and corporations have been instructed to complete reconciliation of their bank accounts in accordance with the revised guidelines by March 31, 2026. A compliance report, duly certified by the competent authority, must be submitted to the Finance Department by April 4, 2026.
