COVID-19 CASES
WorldIndiaConfirmed4,421Deaths114Confirmed1,345,048Deaths74,565State governments who have been facing cash-flow mismatches, get another breather from the Reserve Bank of India, after enhanced limits of liquidity support from the central bank, it has elongated the tenor and frequency of such a facility. To provide greater flexibility to the state governments to tide over their cash-flow mismatches, RBI, on a review, has decided to 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.
Earlier on April 01, the government enhanced the WMA- a temporary facility to meet revenue mismatches – limits to states and union territories ahead of the recommendations of a committee it constituted for the purpose. It increased the WMA limit by 30 percent from the existing limit for all States/UTs to enable the State Governments to tide over the situation arising from the outbreak of the COVID-19 pandemic. The revised limits were effective April 1,and valid till September 30, 2020.
The Reserve Bank also said that 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 arrangement will come into force with immediate effect and will remain valid till September 30, 2020, it said.
Source: indiatimes.com
