The Karnataka government declared on Friday that it has decided to postpone its decision to close accounts with Punjab National Bank (PNB) and State Bank of India (SBI) for a period of fifteen days.
“The Honourable Chief Minister has instructed finance department staff to pause the circular for a period of 15 days in response to petitions from the banks. This would give the banks enough time to deal with the problems and allay the worries of the government,” the press release stated.
In addition, the statement mentioned that both banks wrote to the government on August 16, 2024, asking for an extra 15 days to settle the issue. Senior bank representatives met with higher ranking officials from the finance department that same day to restate their request.
The Karnataka State Pollution Control Board (KSPCB) and the Karnataka Industrial Area Development Board (KIADB) issued fixed deposits, and as a result, the deposits were not repaid. This prompted the government to take action. These difficulties have not been resolved since 2012–2013, despite extensive communication and discussions, according to the statement.