The Reserve Bank of India announced relaxations with regard to availment of Overdraft (OD) facilities. This is being done to enable the State Governments to better manage their fiscal situation in terms of their cash-flows and market borrowings.
The maximum number of days of OD in a quarter is being increased from 36 to 50 days and the number of consecutive days of OD from 14 to 21 days.
This facility will be available up to September 30, 2021. The Ways and Means Advance (WMA) limits of states have already been enhanced on April 23, 2021.
"These include extending the scope to video KYC known as video-based customer identification process," RBI Governor Shaktikanta Das said.
The relevant circulars and notifications relating to all the announcements will be issued separately.
