Karnataka pauses for 15 days circular boycotting SBI, Punjab National Bank

The Karnataka government on Friday suspended its circular, which had banned all business transactions with the State Bank of India (SBI) and the Punjab National Bank (PNB), for 15 days. This move followed a review of the requests made by the two banks, as considered by Karnataka’s Chief Minister Siddaramaiah.

A government circular issued on August 12 directed all its departments, boards, corporations, public sector units, and universities to immediately withdraw all their deposits and investments from the SBI and PNB. Additionally, the circular mandated that no further business transactions be conducted with these banks.

"After considering the banks' requests, the Honorable Chief Minister has directed officials of the Finance Department to keep the circular in abeyance for 15 days," a release from the state government said.