FM's decision to include private banks in government businesses a game-changer, says Karnataka Bank

Mahabaleshwara MS, Managing Director and Chief Executive Officer, Karnataka Bank, on Thursday termed lifting of the embargo on the grant of government businesses to private banks a "citizen-friendly decision". He believes this is going to be a "game-changer" in the Indian banking sector.

“Definitely it will be called as a game-changer decision in the Indian banking sector,” he said in an interview with CNBC-TV18.

The central government has lifted the embargo on granting business to private banks. Finance Minister Nirmala Sitharaman on Wednesday said that all banks will be equal partners in developing the economy.

“The dependence on public sector banks by the private sector bank customers will not be there hereafter. So far the customers were dependent on the public sector banks for making the payments of taxes and other things. Hereafter, the technological innovations that the private sector banks have are going to benefit all the customers equally,” said the Karnataka Bank MD.

The decision will also be beneficial for pensioners because the private sector banks will also be able to provide this service, he pointed out.

“For Karnataka Bank, our current account/savings account (CASA) is going to increase substantially and going forward in a very systematic way,” he said.