The Haryana Finance Department has issued revised guidelines for dealing with banks, introducing stricter norms for opening bank accounts, fixed deposit management and reconciliation processes across government departments and state-run bodies. The instructions were issued vide No. IF&CC/2026(FD)/4131 dated February 18, 2026.
The communication has been addressed to Administrative Secretaries, Heads of Departments, Deputy Commissioners, Managing Directors and Chief Executives of state corporations and boards, university registrars, divisional commissioners and all public, private and small finance banks operating in Haryana.
Administrative Secretaries authorised for nationalised bank accounts
Under the revised framework, Administrative Secretaries have been authorised to approve the opening of bank accounts for schemes, projects and programmes in nationalised banks operating in Haryana, in line with earlier Finance Department instructions.
However, if any department or organisation proposes to open a bank account in a corporate or private sector bank, prior approval of the Finance Department (Institutional Finance & Credit Control) will be mandatory. Such proposals must include detailed justification, specific reasons for not opting for a nationalised bank, and full particulars of the proposed account or scheme.
The circular states that any bank account opened without following the prescribed procedure will be treated as irregular and may be liable for immediate closure. Administrative Secretaries, Heads of Departments and Chief Executives of boards, corporations, societies and PSUs have been made responsible for ensuring strict compliance, with non-compliance attracting administrative and financial action as per government rules.
IDFC First Bank and AU Small Finance Bank de-empanelled
In a significant move, the Finance Department has de-empanelled IDFC First Bank and AU Small Finance Bank for government business in Haryana with immediate effect until further orders.
The circular directs that no government funds shall be parked, deposited, invested or transacted through these banks. All concerned departments and organisations have been instructed to immediately transfer balances and close accounts maintained with the two banks.
Concerns over fixed deposit handling by banks
The department also flagged irregularities in the handling of fixed deposits by certain banks. It noted that in several cases, funds intended for flexible deposits or higher-interest fixed deposit instruments were retained in savings accounts, resulting in lower returns and financial loss to the government.
Additionally, many departments and corporations were found not to be regularly reconciling their fixed deposit and bank accounts, leading to delays in detecting discrepancies.
In response, all departments, corporations, boards and PSUs have been directed to ensure fixed deposits are placed strictly as per approved terms, verify bank compliance with deposit instructions, reconcile fixed deposit and related bank accounts on a monthly basis, and immediately report serious deviations to the Finance Department.
Mandatory reconciliation deadline set
The Finance Department has further directed that all departments, boards and corporations must reconcile their bank accounts in accordance with existing guidelines and complete the process by March 31, 2026.
A compliance report, duly certified by the competent authority, must be submitted to the Finance Department by April 4, 2026.
The circular concludes by urging all concerned authorities to adhere to the revised instructions in letter and spirit.