Centre to look into Kerala’s demand for higher borrowing
MoS for finance P. Radhakrishnan said the central government will look into the Kerala’s demand for enhancing its borrowing limit from 3% of gross state domestic product to 4.5%
New Delhi: The central government will look into the Kerala government’s demand for enhancing its borrowing limit from 3% of gross state domestic product (GSDP) to 4.5%, minister of state for finance P. Radhakrishnan has said.
An official statement from finance ministry said on Thursday quoting Radhakrishnan that public and private insurance companies have been instructed to quickly process all claims arising out of floods in the state.
The minister said that Kerala has ₹562 crore in the State Disaster Response Fund (SDRF) and that a decision on further fund requirement will be taken after the state submits a proposal. He said that banking services in the state were severely hit by the floods and steps were taken to make bank branches and cash dispensers functional.
The minister said that charges for issuing duplicate passbooks, deposit receipts and charges for not maintaining minimum balance had been waived. Soiled and defective notes will be exchanged at all bank branches.
The government has extended the moratorium on agricultural and micro, small and medium enterprises loans for one year, the statement said quoting the minister.