Karnataka Government Halts all Transactions with SBI and PNB: Find Out Why

Chief Minister Siddaramaiah gave his approval to the decision, which was then issued by the state's finance secretary.

It gives all state agencies the order to instantly retrieve their deposits from the central government-backed banks and close their accounts.

Additionally, the order forbids making any more deposits to these banks.

The directive applies to public companies, corporations, local authorities, universities, and other organisations in addition to governmental departments.

The order states, "Termination of accounts held in the State Bank of India and Punjab National Bank by state government departments, public enterprises, corporations, local bodies, universities, and other institutions."

Allegations of misuse of government funds placed in SBI and PNB have prompted the decision to halt transactions with these banks.

The matter was not resolved in spite of earlier alerts and discussions on these claims. Henceforth, the Karnataka government was prompted to take this severe action.

Government activities will be immediately disrupted by this suspension, which may cause payments to vendors, salaries, and other financial transactions to be delayed.