RBI gives States longer overdraft period to meet cash-flow mismatches

To give state governments flexibility to tide over cash-flow mismatches the RBI has extended the number of days for which States/UTs can be in overdraft continuously to 21 working days, from 14 days. Further, the number of days for which a State/UT can be in overdraft in a quarter has been increased to 50 working days from the current 36.