Haryana Govt De-Empanels IDFC First Bank, AU SFB With Immediate Effect: Here's Why

The Haryana government has officially de-empaneled IDFC First Bank and AU Small Finance Bank, prohibiting any government funds from being deposited or transacted through these institutions. This decision, effective immediately, stems from concerns over the banks' operational conduct and compliance with state regulations. The move aligns with the state's broader objective to ensure financial transparency and accountability in managing public funds. The de-empanelment reflects the government's commitment to safeguarding taxpayer money and ensuring that only compliant financial institutions handle state resources. Stakeholders in the financial sector are now analyzing the implications of this decision on the two banks' operations and their relationships with the state government. The Haryana government’s action underscores the importance of maintaining stringent standards for financial partners, particularly in the context of public trust and fiscal responsibility.