Private Sector Banks Problems and Prospects

ment circulars to its various departments but in practice it does. Not only the government/semi-government bodies which are public enterprises but a few private sector enterprises also do not recognise private sector banks. The bank guarantees, fixed deposit receipts, pay orders are still not accepted by these bodies. If the government intends to inject an element of competitiveness in hanking system and accepts that it is the financial soundness of the guarantor i e, important and not the ownership, this discrimination should end immediately. If things are not done voluntarily they should be made compulsory.