ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Cement-Shortage at Last

therefore, has its choice restricted to three heads "Balances held abroad", "Bills purchased and discounted" and "Investments". Balances held abroad would indeed be acceptable to the Issue Department as eligible assets and they have been around Rs 90-100 crores for a long time now. But as these balances are held either as short-term securities or as cash balances at various centres abroad, it is probably not considered feasible to transfer them to the Issue Department in exchange for notes. The other item "Bills purchased and discounted" is not significant and offers hardly any scope for transfer. As for "Investments" in the Banking Department, these would be accepted by the Issue Department only to the extent they are held as Government of India rupee securities or treasury bills. Investments in State Government securities and shares and debentures do not qualify for exchange against notes supplied by the Issue Department. Since these investments have remained fairly steady around Rs 110 crores for some weeks now, obviously there seems to be no further scope for transfer from this head. The Banking Department thus seems to have come to the end oi its tether as far as eligible assets are concerned.

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