RBI relaxes overdraft facility for state governments to manage the fiscal situation better
May 5, 2021, 15:08 IST
To enable the State Governments to better manage their fiscal situation in terms of their cash-flows and market borrowings, the Reserve Bank of India (RBI) on Wednesday permitted certain relaxations with regard to availment of Overdraft (OD) facilities.
Accordingly, the maximum number of days of OD in a quarter is being increased from 36 to 50 days and the number of consecutive days of OD from 14 to 21 days.
This facility will be available up to September 30, 2021. The Ways and Means Advance (WMA) limits of states have already been enhanced on April 23, 2021.
The relevant circulars and notifications relating to all the announcements will be issued separately.
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Accordingly, the maximum number of days of OD in a quarter is being increased from 36 to 50 days and the number of consecutive days of OD from 14 to 21 days.
This facility will be available up to September 30, 2021. The Ways and Means Advance (WMA) limits of states have already been enhanced on April 23, 2021.
The relevant circulars and notifications relating to all the announcements will be issued separately.
SEE ALSO:
Banks respond positively to Indian central bank’s COVID stimulus package – check out the list of top gainers
COVID-19 vaccine centres – Use WhatsApp to find your nearest one
The Pentagon has its eye on the out-of-control Chinese rocket that is expected to crash into Earth — but it’s not anything to lose sleep over
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