The Karnataka Authorities has placed on maintain its determination to shut all accounts with State Financial institution of India and Punjab Nationwide Financial institution after the banks submitted written representations in search of 15 days to resolve the matter.
The choice adopted a gathering chaired by Chief Minister Siddaramaiah with officers of the finance division on Friday.
“On August 16, 2024, each banks submitted written representations to the federal government, requesting a 15-day interval to resolve the matter…. After contemplating the financial institution’s requests, the Honourable Chief Minister has directed officers of the Finance Division to maintain the round in abeyance for 15 days,” a press release issued by the division stated.
On Wednesday, the division issued a round asking all state authorities departments, public sector models, boards, companies, native our bodies, universities and different establishments to close all accounts with SBI and PNB by September 20.
In response to the Authorities, the choice adopted two fraudulent transactions reported at these banks. The primary is said to PNB’s Rajajinagar department, the place the Karnataka Industrial Space Growth Board began a set deposit of Rs 25 crore on September 14, 2011. Nonetheless, after the time period of the deposit ended, PNB allegedly launched solely Rs 13 crore.
The opposite case was associated to a set deposit on the erstwhile State Financial institution of Mysore, which merged with SBI in 2017. The Karnataka State Air pollution Management Board had a set deposit of Rs 10 crore on the financial institution’s Avenue Street department. In response to the Authorities, the quantity was adjusted in opposition to loans taken by a non-public firm.
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