New Delhi: Karnataka authorities has deferred the order concerning transactions with State Financial institution of India (SBI) and Punjab Nationwide Financial institution (PNB) for 15 days. On August 12, the state authorities had ordered to cease all sorts of transactions with SBI and PNB. Together with this, the federal government had additionally issued directions to the state departments to shut their accounts in these banks and withdraw their deposits. Now the state authorities has deferred this order for 15 days.
Karnataka authorities had issued a round on August 12. On this, it had given orders to all its departments, boards, companies, public sector items and universities to cease all sorts of authorities transactions with SBI and PNB. Now Chief Minister Siddaramaiah has determined to defer this resolution in the intervening time to contemplate the request made by each the banks. The state authorities mentioned in a press release that after contemplating the requests of the banks, the Chief Minister has directed to postpone these choices for 15 days.
Why was the ban imposed?
The federal government had mentioned in its order that neither any quantity nor any sort of funding ought to be deposited in SBI and PNB. This instruction issued by Dr. PC Jaffer, Secretary of Finance Division in Chief Minister Siddaramaiah Authorities, got here amid allegations of misuse of presidency funds deposited in these two banks. On this, it was mentioned on behalf of the federal government that regardless of repeated warnings in regards to the alleged misuse, SBI and PNB didn’t take any concrete steps from their facet. For that reason, a ban is imposed on transactions with each the banks.
Suspending the choice will give time
The state authorities has mentioned in its assertion that suspending this ban in the intervening time will give sufficient time to each the banks and the federal government to resolve the associated points and handle the considerations of the federal government. In keeping with the assertion, the federal government is dedicated to making sure transparency and accountability in all its transactions. The federal government mentioned that we’ll proceed to watch the state of affairs and take applicable motion to guard the pursuits of all stakeholders.
The choice was taken after the CAG report
The state authorities mentioned that the order was issued on August 12 primarily based on the feedback of the Public Accounts Committee and the findings contained within the report of the Comptroller and Auditor Basic (CAG). In it, all departments had been directed to withdraw their deposits and never deposit any additional quantity in all branches of SBI and PNB. In keeping with the assertion, this motion was taken in response to alleged fraud in financial institution branches. Consequently, the quantity of mounted deposits (FD) was not repaid by the Karnataka State Air pollution Management Board (KSPCB) and Karnataka Industrial Space Growth Board (KIADB).