For payment to contractors, accredited agencies, suppliers, the withdrawal ceiling will be ₹1 Lakh for each treasury bill or cheque as the case may be. Earlier, there was no restrictions for transfer crediting Plan funds from the consolidated fund of the State to the Plan Scheme Treasury Savings Bank (PSTSB) account opened exclusively for Plan schemes and Special Treasury Savings Bank (STSB) account for parking non-Plan grant released to various institutions. The ceiling for withdrawal from PSTSB, STSB, Public Deposit and Treasury Public (TP) account has been fixed at ₹5 lakh. The Finance Department has also reissued a list of 30 items that have been exempted from treasury curbs. But a horde of factors, including poor tax collection, post-flood economic stagnation and Central fund flow together complicated the financial situation.

Source: The Hindu February 17, 2019 15:11 UTC