Punjab denies stoppage of overdraft by RBI
The Punjab finance department today denied a report appeared in some section of the media that the Reserve Bank of India (RBI) has stopped providing further overdraft to the state government.
Describing the report as 'unfounded and baseless', a finance department spokesman here said no such communication has been received from the RBI.
He said the state government has not defaulted on the terms of agreements entered into with the RBI for the purpose of drawing ways and means advances or the overdraft and therefore there was no question of Reserve Bank of India stopping ways and means advances or overdraft facility to the state government.
He said the government has been regularly disbursing salaries to its employees and a total amount of Rs 17,650 crore was disbursed on this account during 2013-14 out of which Rs 1,747 crore was disbursed in March 2014 alone.
(Posted on 12-04-2014)