Uttarakhand: RBI increased the overdraft and special withdrawal limit of Uttarakhand, you will not have to take small loans

The Reserve Bank of India (RBI) has increased the overdraft and special drawing limit of the Uttarakhand government. This has strengthened the cash flow management in the state treasury. With these two reliefs, now the state government will not have to take small loans from the open market for the salaries of the employees.

Instead, the government will take long-term loans to meet its needs. Finance Secretary Dilip Jawalkar has confirmed this. He said that at present the overdraft limit for the state is Rs 602 crore. RBI has increased this limit to Rs 839 crore.

Similarly, the special drawing limit (SDL) has also been increased from Rs 382.97 crore to Rs 2543 crore. With this increase, there will be a cash flow of about 3300 crore in our treasury. The biggest benefit of this cash flow will be in arranging funds for salaries and allowances given from time to time. Otherwise, to maintain cash flow, we had to take short-term loans from the open market. Now this will provide relief. Our cash flow management will also improve and instead of taking small loans, we will take long-term loans.

Facility provided under NSA-Sparsh scheme

The reason behind the increase in overdraft and SDL limits by RBI to create cash flow is the System Integrated Prompt Transfer (SNA-Sparsh) scheme launched by the Finance Ministry, which has been adopted by the state government. According to the Finance Secretary, the state government will start working on the SNA system from October. He reviewed it on Monday. Under the new system, the Finance Ministry will monitor the fund flow of the states. For this, Additional Secretary Finance C Ravishankar has been made the nodal officer. It will start with centrally funded schemes.