(a) the total amount of ways and advance/overdrafts
availed by each State Government during 2000-2001
alongwith the interest paid to RBI on these advances;
and
(b) the number of days allowed by Reserve Bank of
India on ways and means advance and overdrafts?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL
(a) : The transaction between a State and the Reserve
Bank of India is conducted as per an agreement between
the two. Since, it is a matter of relationship between
the banker and the client (between the Reserve Bank of
India and the State Government), such information is
not published/made public by Government of India.
(b) : Though no time limit has been stipulated for the
normal Ways & Means Advance(WMA), States are expected
to clear WMA in 90 days. With regard to Special WMA
(secured), which is extended against the States`
holdings in Government of India dated securities/
Treasury Bills, there is no time limit. Under the
Overdraft Regulation Scheme applicable to the State
Governments recently revised with effect from
February 1,2001,
(i) No State shall be allowed to run an overdraft with
Reserve Bank of India for more than 12 consecutive
(earlier 10) working days.
(ii) The overdraft shall not exceed 100 per cent of
normal WMA limit. On the first occasion when this is
exceeded in a financial year, Reserve Bank of India
will advise the State that the Overdraft amount
should not exceed 100 per cent of normal WMA limit
on any subsequent occasion. If it so exceeds on a
second or any subsequent occasion during a financial
year, the State is given five (earlier three) working
days` notice to bring the overdraft amount within the
level of 100 per cent of normal WMA limit.