The Reserve Bank of India (RBI) Friday lifted the ban imposed on fund transactions by the Manipur government due to an overdraft. The development comes hours after Chief Minister N Biren Singh said that the overdraft was neutralised and restrictions on the financial transactions by the top central bank would be lifted soon.
On Thursday, the Chief Minister had announced that the Finance Ministry agreed to raise the open market borrowing for Manipur till Rs 795 crore. Singh had also said that as an immediate relief to overcome the draft, which had reached Rs 315 crore on Thursday, the state will borrow Rs 400 crore.