With an aim to help State governments tide over the financial problems triggered by the COVID-19 pandemic, the RBI on Tuesday extended by six months the additional flexibility provided to States to raise funds through market borrowing and overdraft. The Reserve Bank in April provided additional flexibility to States and Union Territories (UTs) to raise funds to deal with the COVID-19 crisis. The flexibility was available till September 30. On a review, it has been decided to extend the measures till March 31, 2021, the central bank said.
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