New Delhi: The Karnataka government has taken a significant step by suspending all transactions with the State Bank of India (SBI) and Punjab National Bank (PNB). In an order approved by Chief Minister Siddaramaiah, the state has instructed all departments to close their accounts with these banks and promptly recover their deposits.

The order also specifies that no further deposits should be made into SBI or PNB. Additionally, the directive extends to public enterprises, corporations, local bodies, universities, and other institutions, instructing them to follow the same guidelines.

The directive follows allegations of misuse of government funds deposited in these banks. Despite prior warnings and communications, the issue remained unresolved, leading the government to take this decisive action.

This is a developing story, and more details are awaiting.