The RBI has a tradition of excellent relations with the Government of Andhra Pradesh and all the Chief Ministers. As Governor, I have called on Shri Chandrababu Naidu garu when he was Chief Minister and now I call on Dr Y.S. Rajasekhara Reddy garu from time to time. Both Reserve Bank and our State benefit from such meetings at several official levels.
Let me place before you some recent developments in Andhra Pradesh about which Reserve Bank is particularly pleased. First, as the banker to the State Government, we are happy that in the last three years the State never took temporary advances from us to meet any day-to-day deficits between receipts and expenditure. This shows a prudent fiscal management.