The Karnataka government, which was upset with the State Bank of India (SBI) and Punjab National Bank (PNB), seems to have relented. The government on Friday postponed its order to end business dealings with these two banks for 15 days. According to a Bhasha report, Chief Minister Siddaramaiah decided to postpone this decision to consider the request made by both the public sector banks.
Decision after considering the requests of banks
Let us tell you, in a circular issued on August 12, the state government had ordered all its departments, boards, corporations, public sector units and universities to stop all types of government transactions with SBI and PNB. The state government said in a statement that after considering the requests of the banks, the Chief Minister has directed the officials of the Finance Department to suspend the circular for 15 days. According to this, suspending the previous circular will give banks enough time to address the related issues and address the concerns of the government.
Appropriate action to protect the interests of all stakeholders
According to the statement, the government is committed to ensuring transparency and accountability in all its transactions. The government said that we will continue to monitor the situation and take appropriate action to protect the interests of all stakeholders. The state government said that the circular was issued on August 12 based on the comments of the Public Accounts Committee and the findings contained in the report of the Comptroller and Auditor General (CAG).
Fixed deposit amount not repaid
All departments were directed to withdraw their deposits and restrict further deposits in all branches of SBI and PNB. According to the statement, this action was taken in response to alleged fraud in bank branches, resulting in non-repayment of fixed deposits made by the Karnataka State Pollution Control Board (KSPCB) and Karnataka Industrial Area Development Board (KIADB).
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