BENGALURU: The Karnataka authorities Friday determined to withhold suspension orders in opposition to two nationalised banks – SBI and PNB – and granted them 15 days to rectify points associated to misuse of presidency funds.
Finance division officers and representatives of the 2 banks met on Friday and officers instructed TOI the discussions had been “fruitful”. Banks had requested a fortnight to set issues proper.A senior official mentioned, “We’re suspending the operation of the round for 15 days in view of the assurances given by banks.”
Earlier this week, the federal government had issued an order instructing all departments to droop banking operations with SBI and PNB attributable to scams that occurred in these establishments between 2011 and 2013. Sources say the choice despatched a “robust message” to all banking establishments, emphasising the necessity for stringent checks and balances when dealing with state authorities funds.
The confrontation between the state authorities and SBI and PNB stemmed from Public Accounts Committee’s robust criticism of the finance division for not penalising the 2 banks for scams.
“Primarily based on PAC’s robust suggestions, which embarrassed the finance division, we determined to withdraw all authorities funds from the 2 banks,” officers mentioned.
In the meantime, chief minister CM Siddaramaiah held a preparatory assembly to organize for the sixteenth Finance Fee’s go to to Karnataka, scheduled for Aug 28 to 30. Finance division officers, income minister and Karnataka’s consultant on the GST Council, Krishna Byre Gowda, and CM’s the chief minister’s financial advisor, Basavaraj Rayareddi, had been in attendance.
