Finance Department denies any stoppage of overdraft to state by RBI

Chandigarh, April 11, 2014: A news report has appeared in some newspapers on Friday that the Reserve Bank of India has stopped providing further overdraft to Punjab Government.  
A spokesman of the Finance Department described the report as unfounded and baseless. He said that no such communication has been received from RBI. He said that the Punjab Government has not defaulted on the terms of agreements entered into with the Reserve Bank of India for the purpose of drawing Ways and Means advances or the overdraft and therefore there was no question of Reserve Bank of India stopping Ways and Means advances or overdraft facility to Punjab Government.  
The spokesman said that the Government has been regularly disbursing salaries to its employees and a total amount of Rs 17,650 crore was disbursed on this account during 2013-14 out of which Rs. 1,747 crore was disbursed in March 2014 alone.