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empanelment and increases in deposit investment limits subsequent to the July 12, 2024, empanelment instructions are withdrawn with immediate effect.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 lower. A minimum notice period of three working days shall be provided before inviting quotations,'' said Gupta. Finance department officials said the decisions followed recommendations of the high-level committee on state banking policy and unauthorised fund transfers. The committee headed by the Gupta was constituted to probe the alleged unauthorised transfer of public funds from IDFC First Bank and AU Small Finance Bank and to review state's banking policy. The committee was tasked with examining the empanelment of IDFC First Bank and AU Small Finance Bank, decisions taken by departments to deposit substantial government funds in these banks, issues relating to non-reconciliation by government departments. any lapses, procedural deficiencies, or systemic failures in this regard. The committee was also mandated to examine provisions of the state's banking policy and its enforcement, assess compliance with the prescribed policy framework by departments, identify accountability, and recommend corrective and preventive measures to ensure such lapses do not recur....