Karnataka Govt Suspends All Transactions with SBI and Punjab National Bank Amid Funds Misuse Allegations

The Karnataka government has announced an order suspending all transactions with the State Bank of India (SBI) and Punjab National Bank. Approved by Chief Minister Siddaramaiah and issued by the Finance Secretary, the directive instructs all state departments to close their accounts with these banks and retrieve their deposits immediately.

The order mandates the termination of accounts held by state government departments, public enterprises, corporations, local bodies, universities, and other institutions with SBI and Punjab National Bank. Furthermore, it prohibits any additional deposits or investments in these banks. This decision follows allegations of misuse of government funds deposited with these banks. Both banks had been previously warned and communicated with regarding these allegations.