The State Government has decided to ensure that the net worth of banks empanelled for government banking transactions and placing of fixed deposits to be not less than ₹1,000 crore.
Primary condition for empanelment would forthwith be that the empanelled banks should reach at least 50 per cent of the lending target programmes sponsored by the government as per the State Credit Plan/Annual Credit Plan during the previous financial years. The empanelment would be for a period of three years and the empanelled banks should maintain minimum capital adequacy ratio at bank level and CD ratio in State level as prescribed by the Reserve Bank of India.
In the revised guidelines issued for empanelment of banks, Finance department special chief secretary K. Ramakrishna Rao said that the new guidelines and conditions were necessitated following the bifurcation of erstwhile Andhra Pradesh, merger of banks as per RBI guidelines, deregulation of banking sector as also the new schemes initiated by the government.
