The Reserve Bank of India on Friday enhanced the Cash Credit Limit (CCL) to Rs.44,028 crores to the Punjab government up to November end for the ongoing paddy procurement season for the second time.
Notably, during the current Kharif Marketing Season (KMS) 2020-21, the paddy has already crossed the procurement mark of 150.46 LMT of last year with procurement of 191.72 LMT till date thereby registering an increase of 27%.
The RBI has extended the CCL of Rs. 8475.39 crores, till the end of November, 2020 on November 13. With this, the sanctioned limit of Rs. 35,552.61 crores for November end has been further enhanced to Rs. 44,028 crores till the end of this month, according to an official spokesperson.
The extension for procurement of paddy, under new account no. VII during Kharif Marketing Season (KMS) 2020-21, is subject to the state government ensuring that SBI would release funds to the Punjab government, which would be authorized only after the State Government submits the Letter of Consent under Article 293(3) of the Constitution of India, obtained from Ministry of Finance, Government of India, and subject to outstanding under all the food credit accounts to be always backed by fully paid stock value.