PSUs asked to park 60% of surplus funds with public banks

All ministries, departments and public enterprises have been asked to keep surplus funds with PSBs, the government said
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First Published: Tue, Feb 26 2013. 11 19 PM IST
Banks have been directed by the Reserve Bank of India to issue cheque books in larger number of leaves to meet requirements of customers. Photo: Mint
Banks have been directed by the Reserve Bank of India to issue cheque books in larger number of leaves to meet requirements of customers. Photo: Mint
New Delhi: All ministries, departments and public enterprises have been asked to keep at least 60% of their surplus funds with public sector banks, Parliament was informed on Tuesday.
“In the light of Public Sector Banks’ (PSBs) special role and importance in the banking industry and in advancing the economic policies of the government, in 2008, the government asked all the ministries/departments and Central Public Sector Enterprises to place at least to the extent of 60% of their surplus funds with PSBs,” minister of state for finance Namo Narain Meena told Rajya Sabha in a written reply.
He was replying to a question on whether the government has asked public sector units (PSU) to invest their surplus cash or give it out as dividends to the government.
“In so far as dividend is concerned, it is a stream of revenue to the shareholders, including the government and is declared by the respective boards of PSBs keeping in view their profit, relevant legal provisions and extant instructions on the subject,” he said.
To a separate question, the minister said banks have been directed by the Reserve Bank of India (RBI) to issue cheque books in larger number of leaves to meet requirements of customers. “Reserve Bank of India (RBI) has issued a Master Circular... that banks may issue cheque books with larger number of leaves (20 or 25) if a customer demands the same and also ensure that adequate stocks of such cheque books (20/25 leaves) are maintained with all the branches to meet the requirements of the customers.”
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First Published: Tue, Feb 26 2013. 11 19 PM IST
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