Outstanding Dues of State Governments to Nationalised Banks

Press Information Bureau

Government of India

Ministry of Finance

29-November-2012 14:42 IST

As per the information received from the Reserve Bank of India (RBI), banks do not lend directly to the State Governments. The market borrowings of the State Governments are generally subscribed by commercial banks (including Nationalised banks).

It may be mentioned that there is no default in repayment of market borrowings of the State Governments so far.

This was stated by the Minister of State for Finance, Shri Namo Narain Meena in a written reply to a question in the Rajya Sabha today.

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