U-turn of Karnataka government, withdrew the directive related to avoiding relations with SBI and PNB

The Karnataka government has announced the withdrawal of one of its controversial directives. The government had issued a circular instructing the state departments to refrain from doing business with State Bank of India (SBI) and Punjab National Bank (PNB). Now the government has withdrawn this directive.

Earlier, the Karnataka government had decided not to deposit any government money in State Bank of India (SBI) and Punjab National Bank (PNB). The state finance department had instructed all government departments, enterprises, boards and corporations to close the accounts operated in these banks and withdraw the deposits.

In fact, SBI and PNB were accused of misusing government funds of various boards and corporations of Karnataka. According to the government, Karnataka Industrial Area Development Board had deposited Rs 25 crore in the Rajaji Nagar branch of PNB in ​​November 2012. After the maturity of the deposit period, the bank returned only Rs 13 crore. Whereas Rs 12 crore was misused. Similarly, in 2013, Karnataka State Pollution Control Board had deposited Rs 10 crore in State Bank of Mysore. It is alleged that the bank adjusted the entire amount in a loan and refused to return the deposit amount. Both the cases are pending in the court.