The agreement follows the reorganisation of the state of Andhra Pradesh into two separate states earlier this year.

Both Andhra and Telangana governments now carry a total public debt burden of Rs 1.79 lakh crore. The amount has to be divided on the basis of population of both the states at 42: 58 ratio (Telangana: AP). The total population of AP is pegged at 8.49 crore.

Meanwhile, Prime Minister Narendra Modi has summoned all the Telangana files from the Union Home Ministry to undergo a full-length scrutiny before acting on the finances and employee separation procedures.

The proposals for division of infrastructure in health, education, industry, power sector, irrigation, urban and rural transport systems, treasuries and services of contract and outsourced employees are awaiting final signal from the PMO.

The process of bifurcation of Andhra Pradesh began following the passage of the Bill in the Parliament and June 2 was declared as the 'Appointed Day' when Telangana would come into existence as the 29th state of India.

Telangana Rashtra Samithi (TRS) supremo K Chandrasekhar Rao was sworn-in as its first Chief Minister on Monday.  K Chandrasekhar, popularly known as KCR, had been spearheading the decades-old struggle in the region for carving out a separate state from Andhra Pradesh.

The Telangana government would maintain cordial relationship not only with the Centre but also neighbouring states, Rao said in his first address as the Chief Minister.

State Bank of Hyderabad to be SLBC convener for Telangana

The Reserve Bank has appointed State Bank of Hyderabad as the SLBC (State Level Bankers' Committee) convener for the newly created state of Telanagana.

"It has been decided to assign the SLBC convenership of Telangana State to State Bank of Hyderabad. The SLBC responsibility for the State of Andhra Pradesh (after carving out Telangana) has been retained with Andhra Bank," RBI said in a notification.

There is no change in the SLBC responsibilities of the other states, RBI clarified further.

SLBC is an inter-institutional forum for coordination and joint implementation of development programmes and policies by all the financial institutions. Government officials also form as part of the SLBC bankers’ forum.


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