RBI says to banks to generate fund for sugar industry
For payment of cane amount overdue to farmers a fund of Rs 798 crore the Reserve Bank of India has certified banks to make for the sugar industry. This pursues the Government’s conclusion previously, to make a bumper stock of 20 lakh tonnes of sugar for a time of one year with outcome from May 1. In this pact, the Government will let go a financial support of Rs 378 crore out of the Sugar growth Fund for recognition to the account of individual sugar mills and banks have also been asked to give up border necessity on the bumper stock account which interprets into extra credit right for the sugar industry tax at Rs 420 crore. The RBI in a notification issued on Wednesday has also asked banks to ensure that no operations on the separate account kept for buffer stocks are allowed for any other purpose and withdrawals from stocks earmarked as buffer stocks are not permitted.
Tags: Business News