The Karnataka government has issued a significant directive, suspending all transactions with the State Bank of India (SBI) and Punjab National Bank (PNB). The Finance Department has instructed all state departments to close their accounts with these banks and immediately withdraw their deposited funds. This order also applies to public enterprises, corporations, local bodies, universities, and other institutions that have accounts with these banks.
No Further Deposits or Investments Allowed
According to the report, the Karnataka government has clearly stated that no further deposits or investments should be made in these banks. This decision comes amid allegations of misuse of government funds and illegal transactions. The directive was signed by Karnataka's Finance Secretary, P.C. Jaffer, indicating the seriousness of the situation.
Why Was This Decision Taken?
The state government’s decision follows allegations of misuse of government funds deposited in these institutions. Despite previous warnings and communications regarding the issue, the problems remained unresolved, leading to this decisive action. The suspension of transactions with SBI and PNB marks a significant shift in the state’s financial operations and highlights the government’s commitment to addressing financial misconduct.
This move by the Karnataka government signals its determination to ensure the proper use of public funds and maintain transparency in financial dealings.