To provide greater flexibility to state governments to tide over cash flow mismatches, the Reserve Bank of India (RBI) on Tuesday increased the number of days for which a state or a Union Territory (UT) can be in overdraft at a stretch to 21 working days from 14 at present.
The number of days for which a state or UT can be in overdraft in a quarter has been increased to 50 working days from the current stipulation of 36 working days, the RBI said.
The arrangement will remain valid till September 30, the RBI said in a statement.
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