RBI relaxes overdraft facility norms for states, UTs
In a circular, the central bank said it has permitted "greater space" to state governments/ Union Territories for availing overdraft facilities.
In order to provide greater flexibility to the state governments to tide over their cashflow mismatches, the RBI has increased the number of days for which a state can be in overdraft.The number of days for which a State/ UT can be in overdraft continuously has been increased to 21 working days from the current stipulation of 14 working days.
All other stipulations remain unchanged. The new arrangement will come into force with immediate effect and will remain valid till September 30, 2020, the circular added.With an aim to check the spread of coronavirus both the central as well as the state governments have taken a slew of measures, including enforcing social distancing among the public.
A nationwide lockdown has been implemented till April 14 which has adversely impacted economic activities and governments have started diverting their resources to deal with the pandemic. NKD SHW MRMR
(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)
- Delhi registers 96 fresh cases in last 24 hours, lowest single-day in nine months
- Axis Bank's net profit for the Q3 of 2020-21 fell 36%
- Bharat Biotech to make antigen for first-ever anti-malaria vaccine
- SIMPLY PUT: Watch out for production linked incentives in the budget — here’s how it will work
- Surgeries, invasive procedures and OPDs to resume at all Delhi government hospitals