No special support to Bengal: RBI

December 7th, 2011 - 9:36 pm ICT by IANS  

Mamata Banerjee Kolkata, Dec 7 (IANS) The Reserve Bank of India (RBI) will not provide any special support to West Bengal, which is facing an acute financial crisis, but will extend “all kind of support with available instruments” to the state, its governor D. Subbarao said Wednesday.

“No exception will be made in respect to ways and means advances (WMA) to West Bengal,” Subbarao told reporters after holding talks with Chief Minister Mamata Banerjee at the state secretariat here.

The cash-starved state is facing acute trouble due to mismatches in cash flow of receipts and payments.

“I am told by the chief minister and the finance minister (Amit Mitra) that efforts are being made to improve the situation. The RBI will extend all kind of support with available instruments under its disposal,” Subbarao said.

He said the central bank would ask the banks to extend credit to the state.

“The state government would also have to take steps to increase the demand for loans from agriculture and manufacturing sectors,” he added.

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