Chandigarh, May 19 -- The Haryana government on Monday withdrew the empanelment of banks, including Federal Bank, IDBI Bank and DCB Bank, for conducting government business in the state, restoring the July 12, 2024, bank empanelment policy framework.

Instructions issued on May 18 by the Additional Chief Secretary (ACS, Finance), Arun Gupta, stated that all decisions regarding empanelment and increases in deposit investment limits subsequent to the July 12, 2024, empanelment instructions are withdrawn with immediate effect.

"To ensure periodic reconciliation, renewal of fixed deposits in the same bank shall be debarred. Funds upon maturity shall be placed in any other empanelled bank, even if the rate of interest offered is marginally lo...