 "Sukhbir Singh Badal")
The Punjab government on Tuesday claimed that Reserve Bank of India will soon lift ban on cash credit limit by banks for food procurement as State has shared data with lenders on outstanding stocks for reconciliation.
Punjab deputy chief minister Sukhbir Singh Badal said state CM Prakash Singh Badal met Prime Minister Narendra Modi in Delhi on Tuesday to discuss the issue of freeze on the cash credit limit imposed by RBI.
Senior public sector bank executive said lenders' will process statistics (given by state government) on outstanding stocks to weed out gaps.
Modi at meeting with Badal assured state that the matching of accounts would take place simultaneously and the CCL would be issued by the Reserve Bank of India. This would ensure that procurement of wheat crop happens without any hurdle, the Deputy CM said in a statement.
Since the year 1997, the accounts of Punjab government and FCI have not been matched, due to which there has been some confusion regarding the matter he said.
Banks give credit limits to state government for procurement against the outstanding food stock. After detection of shortfall in outstanding stocks, RBI asked banks to make provision for this. It gave leeway to banks to make provisions for the extent of shortfall rather than entire credit exposure.
RBI also imposed curb on credit limits.
Some thirty-odd bankers led by State Bank of India, which are staring at heavy losses to the tune of Rs 12,000 crore due to shortfall in Punjab, met on Tuesday to discuss all options, including to stop lending to the state government.
The foodgrain worth Rs 20,000 crore are missing from the Food Corporation of India's godowns in Punjab, which the state claimed to have procured after taking loans from the banks.
Farmers receive payment through cheques with in 72 hrs of grain procurement in Punjab. But this season due to delay in CC limit by the banks payment has been delayed. Procurement commences for wheat from April 1 but picks pace after Baisakhi 13 April.
Annual expenditure on grain procurement for central pool is close to Rs 40,000 Cr in Punjab and is largest in any state in the country.
