Karnataka Govt Circular On Account Closure With SBI, PNB Withheld For 15 Days

The Karnataka government's directive of account closure with SBI and PNB following allegations of misappropriation of funds, has been kept on hold for 15 days after the two banks sought time to resolve the matter.

Bengaluru:The Karnataka government has temporarily withheld its directive on closure of accounts with State Bank of India (SBI) and Punjab National Bank (PNB). The government had earlier asked for withdrawing deposits from these banks following alleged misappropriation of funds but this order has now been kept in abeyance for 15 days.

In a circular issued on August 12, the state government departments, public undertakings, corporations, boards, local bodies, universities and other institutions were instructed to close their accounts and withdraw their deposits from SBI and PNB with immediate effect. Later on August 16, both SBI and PNB had formally approached the government requesting 15 days to address the issues.

SBI chief general manager Vinod Jaiswal submitted a letter to the government and had personally met the additional chief secretary, finance department and the senior officials of the department. He requested the government to settle the issue of refunding the money deposited in the fixed deposit by Karnataka State Pollution Control Board (KSPCB).

Similarly, Deepak Kumar Srivatsava, divisional manager of PNB, met the deputy chief secretary and senior officials of the finance department and requested 15 days to refund the fixed deposit of Karnataka Industrial Area Development Board (KIADB).

With Chief Minister Siddaramaiah's approval, the state government has issued another circular stating that the directive issued on August 12 has been temporarily suspended for 15 days in view of the requests from SBI and PNB.

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