Snapping business with SBI, PNB: Karnataka pauses its circular for 15 days after two banks pledge to resolve issue
Siddaramaiah on Friday asked the Finance department to keep its August 12 circular asking all departments, universities, PSUs and local bodies to withdraw their deposits from State Bank of India (SBI) and Punjab National Bank (PNB) and end their transactions with the two banks in abeyance for 15 days.
The government, in a statement said, the circular came after the Public Accounts Committee (PAC) and the CAG’s recorded their observations over the government’s deposits in the two banks. “This action was taken in response to the alleged fraud in the bank branches, which resulted in the non-repayment of fixed deposits made by the Karnataka State Pollution Control Board (KSPCB) and the Karnataka Industrial Areas Development Board (KIADB). Despite prolonged correspondence and meetings, these issues remained unresolved since 2012-13. On August 16, 2024, both banks submitted written representations to the government, requesting a 15-day period to resolve the matter. The same day, senior bank officials met with higher officials of the Finance Department and reiterated their request,” the statement said.
The CM accepted their request. “This will allow the banks sufficient time to address the issues and redress the concerns of the government. The government is committed to ensuring transparency and accountability in all its dealings. We will continue to monitor the situation and take appropriate action to protect the interests of all stakeholders.”
Soon after the Finance department took a tough stand, the two public sector
