Highest OD was Rs 1490-cr

KT NEWS SERVICE SRINAGAR, Feb 18: The highest ever overdraft that J&K government has taken from the J&K Bank is Rs.

The record was registered in the National Conference government, a spokesman of the Finance department said.

He said the coalition government is keen to contain it and has kept it more or less stagnant at over Rs.

Reacting to the Kashmir Times report about the new mechanism that J&K will be adopting to do away with the OD mess from next fiscal, the spokesman said that the initial plan of managing OD was actually a central government offer.

"Had it been accepted, the RBI ways and means system would have led to adverse impact on the J&K Bank and created lot many problems for the state government", he said.

Instead of accepting the offer, State's Economic Adviser Dr Haseeb Drabu studied the package and worked on it to offer an alternative - which was acceptable to the Union Finance Ministry, RBI and the JK Bank.

Though this is also called the RBI Ways and Means, it is much different from the typical RBI WAM that other states have implemented.