Big order of Raj Bhavan: Crores of rupees of universities will now be shifted to government banks and not to private banks:

News India Live, Digital Desk: Now a new era of financial discipline is about to begin in the government universities of Jharkhand. Taking a tough stand, Raj Bhavan has directed all the universities to immediately withdraw their funds worth crores of rupees deposited in private banks and transfer them to government banks (institutions like Canara and Central Bank). The main objective of this decision is to ensure the safety of public money.

1. Why the ‘disturbance’ from private banks? (Reason for the shift)

It has often been seen that university administrations deposit their funds in private banks in the lure of higher interest or other facilities. The Raj Bhavan investigation revealed some serious concerns:

Lack of transparency: There was a lack of transparency in maintaining accounts of deposit transactions and profits received on private banks.

financial risk: PSU (Public Sector Undertaking) banks are considered more reliable for the security of funds of government institutions.

Centralized Management: Now Canara Bank And Central Bank of India For example, having funds in banks will make monitoring easier for the government and Raj Bhavan.

2. New guidelines of Raj Bhavan (Key Directives)

As per the instructions issued by the Principal Secretary to the Governor:

Deadline: All Vice Chancellors (VCs) have been asked to close the accounts of private banks and transfer funds within a certain time limit.

Expenditure freeze: Large financial transactions or diversification of funds without prior permission has been banned.

Pension and salary: There are also instructions to coordinate with government banks for the management of employees’ salaries and retirement funds.

3. Impact on the financial condition of universities

Many universities of Jharkhand (like Ranchi University, Sidhu Kanhu Murmu University etc.) are currently facing financial crisis and pension payment problems.

Audit Preparation: Raj Bhavan has indicated that soon all the universities will special audit This will be done so that it can be known where and how the funds were used in the last years.

Accountability: Now the Registrar and the Finance Officer will have to submit the report of the status of the fund to Raj Bhavan every quarter.

4. Stirring among the Vice Chancellor and officials

After this order, there is panic in the corridors of the university. Many officials believe that this may affect autonomy, while experts say that this ‘surgical strike’ was necessary to curb corruption.