Telangana Availed OD For 9 Days: RBI

Hyderabad: The Telangana government relied heavily on the Reserve Bank of India’s short-term liquidity support mechanisms in November 2025, indicating mounting financial pressure due to its rising debt burden. According to the latest RBI report released on Wednesday, the state availed the Special Drawing Facility (SDF) on all 30 days of the month, drew Ways and Means Advances (WMA) for 24 days, and resorted to overdrafts (OD) for nine days.

Such sustained dependence on multiple borrowing windows within a single month underscores the severity of the cash-flow mismatch faced by the government in meeting its expenditure commitments.Among these facilities, the SDF is considered the most economical option for managing temporary liquidity gaps. It is secured against a State’s investments in Central government securities and other designated funds, and carries an interest rate one percentage point below the prevailing repo rate. Telangana availed SDF to the extent of Rs 5,143.64 crore throughout November, reflecting persistent stress on its treasury operations. When SDF limits are exhausted or prove inadequate, States turn to WMA — short-term loans linked to the repo rate that must be repaid within 90 days to avoid penal interest.

In November 2025, Telangana drew WMA amounting to Rs 1,710.49 crore for 24 days. After exhausting both SDF and WMA limits, the State accessed overdraft support, the costliest and last-resort option, to the extent of Rs 1,144.07 crore for nine days.Telangana’s borrowing pattern stands out nationally. Only four major States—Telangana, Andhra Pradesh, Punjab and Uttarakhand—availed SDF for all 30 days in November 2025. Among smaller States, Meghalaya was the only one to do so. The use of overdrafts was even more limited across the country, with just five states — Telangana, Andhra Pradesh, Himachal Pradesh, Madhya Pradesh and Meghalaya — resorting to this facility. The inclusion of both Telugu states in these lists points to relatively sharper fiscal stress in the region.The pressure is further evident in Telangana’s rising market borrowings. In 2025–26, the state’s gross market borrowings had already touched Rs 60,000 crore by November, while net borrowings stood at Rs 47,650 crore. These figures exceed the borrowing levels recorded in entire financial years in the recent past. In 2023–24, gross and net borrowings were Rs 49,618 crore and Rs 39,385 crore respectively, while in 2024–25 they rose to Rs 56,209 crore and Rs 42,199 crore.