RBI permits State Governments for availing overdraft facilities

Apr 08, 2020 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Reserve Bank of India (RBI) on April 07, 2020, provides access to the State Governments and Union Territories for availing overdraft facilities in order to provide greater flexibility to tide over their cashflow mismatches.

Thus, RBI has decided to:-

a) increase the number of days for which a State/ UT can be in overdraft continuously to 21 working days from the current stipulation of 14 working days.

b) the number of days for which a State/ UT can be in overdraft in a quarter has been increased to 50 working days from the current stipulation of 36 working days.

This shall come into force with immediate effect and will remain valid till September 30, 2020.

 

 


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