States got Reserve Bank’s help in fighting Coronavirus: The Reserve Bank took a major decision today to ease the economic woes of the states and union territories amid the lockdown across the country due to Corona’s havoc.
States got Reserve Bank’s help in fighting Coronavirus
The Reserve Bank has said that now states will be able to take an overdraft for 21 days instead of 14 days. This decision has come into force with immediate effect and will remain in effect till 30th September.
According to a statement issued by the Reserve Bank on Tuesday, any state or union territory can now avail of an overdraft facility for 21 consecutive working days.
Earlier this facility was available for a maximum 14 days. This change has been made to fight the situation arising out of the Coronavirus to help the states tackle the cash flow mismatch.
Along with this, the Reserve Bank has given another relief to the states or union territories. Now he can avail the facility of overdraft for 50 working days in a quarter. Earlier states were able to take advantage of this for a maximum of 36 working days.