The Karnataka government has issued an order suspending all transactions with the State Bank of India (SBI) and Punjab National Bank. The Finance Department has directed all state departments to close their accounts in these banks and recover their deposits immediately. Accounts held by state government departments, public enterprises, corporations, local bodies, universities and other institutions in the State Bank of India and Punjab National Bank should be terminated immediately.
No further deposits or investments should be made
According to the news, the Karnataka government has said in its order that no further deposits or investments should be made in these banks. This has come amid allegations of misuse of government funds and illegal transactions. This order has been signed by Karnataka government’s Finance Secretary PC Jaffer.
why did you take this decision
The state government’s decision, approved by Chief Minister Siddaramaiah and issued by Finance Secretary Jaffer, comes amid allegations of misuse of government funds deposited in these entities. Despite previous warnings and communications about the alleged misuse, the issues remained unresolved, leading to this decisive action. The suspension of transactions with SBI and Punjab National Bank represents a significant change in the handling of state finances and underlines the government’s commitment to addressing financial malfeasance.
According to the report, the order comes in the backdrop of the ongoing political tussle between the Congress-ruled Karnataka government and the opposition BJP over the alleged money transfer scam involving the state-run Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Ltd. The alleged scam came to light after the corporation’s accounting superintendent Chandrasekhar P committed suicide on May 26 and left behind a note.
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