Funds-starved AP Government has reached it financial brink as Reserve Bank has made it clear that the amounts it has taken under the Ways and Means and Special Ways and Means arrangements have now slipped into the over draft category.

A state government can draw funds from RBI under these two facilities but has to repay the amounts within 30 days of drawing. If the payment is not made , it would be treated as overdraft. Then a duration of 14 days would be given  to repay the overdraft.

Again, if it is not repaid within the stipulated period, RBI will charge 9.5 per cent interest.

The state government has so far taken Rs.700 Cr under the Ways and Means facility and another Rs.762 Cr under the Special Ways and Means Facility.

However, as the Chandrababu Naidu government has failed to pay the amounts within the stipulated 30 days,  RBI informed the top officials that both the loan amounts have drifted into overdraft category and asked them to repay the loans in the next 14 days.