SBI rejects Andhra Pradesh government's Rs 6,500 crore overdraft
Deccan ChronicleAmaravati: The State Bank of India has rejected Andhra Pradesh government's Rs 6,500 crore 'overdraft' for implementing the Centrally With its coffers completely dry, the state government sought the overdraft to be used as working capital by five nodal implementing agencies "against securitisation of fund balances available in the Single Nodal Accounts." The "unusual and unheard of" request by the Finance Secretary left top bureaucrats baffled since it only further exposed the state government's perilous financial condition. The Union Department of Expenditure this year brought in new rules for ensuring funds flow to the states for the CSS, under which primarily the state is required to open a Single Nodal Account in a scheduled commercial bank for each scheme, mapped in the Centre's Public Financial Management System. Officials aver the Centre's new system was basically to prevent diversion of CSS funds for "other purposes" by the state government.
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