Amidst border dispute, state allows use of Karnataka bank for government transactions

With the decision in place, the banks will be used to depositing salaries and pensions to the employees and retired professionals. For which, their accounts have been allowed to be opened, said a senior official from the state finance department.

Mumbai: Amid the raging dispute over border areas between Maharashtra and Karnataka, the Shinde-Fadnavis government, on Wednesday, approved Karnataka Bank Limited, Jammu and Kashmir Bank Limited and Utkarsh Small Finance Bank Limited as three private banks that are allowed to handle government transactions. The state finance department issued an order regarding the same.

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With the decision in place, the banks will be used to depositing salaries and pensions to the employees and retired professionals. For which, their accounts have been allowed to be opened, said a senior official from the state finance department.

“To provide a salary for employees and pensions for retired employees, the state government has signed an agreement with the above three banks. The state government is allowing the concerned officials, employees and pensioners to open their accounts in these banks,” states the order issued by the state finance department.

Before this, the state government in December 2021, allowed the use of banking services of Bandhan Bank Ltd., Equitas Small Finance Bank Ltd., The Karur Vysya Bank Ltd. and The South Indian Bank Ltd.

The decision was taken following a political controversy evoked after it came to light that bank accounts of several municipal corporations and even the state police are using private bank services.