More than 30 banks, led by the State Bank of India, have decided not to lend any more money to the Punjab government until the issue of missing foodgrain is resolved, reported Economic Times. The banks took the decision at a meeting on Monday after the Reserve Bank of India asked lenders to maintain a security of 15% against the Rs 12,000 crore in loans extended to the Food Corporation of India. That amount was lent to the FCI for it to procure foodgrain on behalf of the state, much of which has allegedly vanished from godowns.

The banks' decision comes after a surprising directive from the RBI, which asked banks to treat the FCI loans as non-performing assets even though the money had been lent out to a central agency. On the same day, Punjab Chief Minister Parkash Singh Badal met Prime Minister Narendra Modi seeking a cash credit limit of Rs 20,094 crore to resolve the crisis and ensure wheat can be procured on time this season, reported PTI.

Admitting the gap between actual food stocks in warehouses and what should have been, Minister of State for Finance Jayant Sinha told The Indian Express, “We have to investigate the matter and once we find a solution to the issue, we will communicate it to you [media].” He said the government is working with the the stakeholders to resolve the matter.

At the beginning of each fiscal year, the FCI gets a cash credit limit of around Rs 55,000 crore from public sector banks to procure rice and wheat from procurement agencies. These agencies in turn get foodgrains from farmers and store them in their godowns on behalf of the FCI. Estimates suggest that there is a discrepancy of as much as Rs 20,000 crore between what was purchased and the actual amount of foodgrain in godowns, which prompted the RBI to demand the 15% provision. The Punjab government has denied the reports, and insists all stocks have been accounted for.