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Manipur chief minister N Biren Singh
Manipur chief minister N Biren Singh|File image
MANIPUR

Big relief for Manipur as RBI lifts ban on fund withdrawals

Development comes after CM N Biren Singh announced that the overdraft was ‘neutralised’; apex bank later issues circular to ‘resume payments’ with effect from June 21

Vangamla Salle K S

Vangamla Salle K S

Imphal: Imphal: The Reserve Bank of India (RBI) has lifted the ban imposed on withdrawal of funds by the Manipur government. The development came after CM N Biren Singh announced that the overdraft was neutralised and restrictions on financial transactions would be lifted soon.

On Friday, the RBI issued a circular in which it said that since the overdraft of the state government was now cleared, "we have arranged to advise our offices and other agencies to resume payments for the state with effect from June 21, 2019”.

RBI’s official circular lifting the ban imposed on financial transactions by the Manipur government
RBI’s official circular lifting the ban imposed on financial transactions by the Manipur government
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Speaking at a function to mark the 5th International Yoga Day at Indoor Stadium, Khuman Lampak in Imphal as a chief guest, the CM also said that trust is the most important component so as to have peace and tranquillity among the communities.

Since June 12, after the apex central bank banned the state government from all financial withdrawals, the functioning of Manipur's administration paralysed. This, in turn, resulted in halting of all departmental recruitment processes for the time-being.

On Thursday, CM Singh had announced that the finance ministry has agreed to raise the open market borrowing for Manipur till Rs 795 crore. Also, as an immediate relief to overcome the RBI draft amount of Rs 315 crore, the state had taken a loan of Rs 400 crore, it said.

This announcement came following the CM’s meeting with Union finance minister Nirmala Sitharaman and other central leaders in New Delhi earlier this week.

Earlier, when the overdraft came to the notice of the chief minister, the portfolios of two top ministers -- deputy chief minister Y Joykumar as the finance minister and Thongam Biswajit Singh as the public works department and power minister -- were stripped.

According to reports, the chief minister had earlier said that he had kept the portfolios with him for the time being and the same would be reallocated to the ministers once the ban on the overdraft was lifted.