Overview

• The Odisha government withdrew its June 21 notification de-empanelling Axis Bank, HDFC Bank and ICICI Bank and restored their status to handle state financial transactions.
• The initial removal cited poor performance in flagship schemes and unsatisfactory general banking parameters as grounds for de-empanelment.
• On July 1, senior bank officials met Chief Minister Mohan Charan Majhi and submitted written commitments to enhance scheme outreach, raise credit–deposit ratios and step up priority sector lending.
• The reinstatement order specifies that any account closures or deposit withdrawals already carried out under the earlier directive remain in effect.
• The episode underscores Odisha’s use of its empanelment policy to enforce accountability while maintaining collaborative engagement with private banks.