Thiruvananthapuram: According to a report, the Kerala State government was refused funds by two public sector banks amid financial crisis in the state. The report also said that the State government is considering black-listing banks that refuse funds to it directly or indirectly. It is reported that this is the first time banks are refusing funds to the state government.
The state government was planning to raise funds to the tune of Rs.1,700 crores through its two welfare boards, Motor Vehicle Workers Welfare Board and Toddy Tapping Workers Welfare Board. However, the banks refused to extend funds to the government, which is facing severe financial crunch after Onam.
The finance department is said to be planning to approach private banks after the public banks denied funds to the government, said the report.
The report added that the Kerala government will take a debt of Rs.1000 crores from the Reserve Bank of India (RBI) on Tuesday.