RBI eased terms governing availment of the overdraft facility extended to State Governments/UT

New Delhi: RBI Governor in his latest Statement dated May 5, 2021, that RBI has eased the terms governing availment of the overdraft facility extended to State Governments/UTs, to enable them to better manage their fiscal situation in terms of their cash-flows and market borrowings. 

Accordingly, the maximum number of days in a quarter on which State Governments/UTs can avail overdraft is being increased from 36 days to 50 days. Further, the number of consecutive days on which a State Government/UT can avail of overdraft is being increased from 14 days to 21 days. 

This facility will be available up to September 30, 2021. The Ways and Means Advance (WMA) limits of States/UT have already been enhanced on April 23, 2021.