<h1>Finance Ministry Directs RBI to Reverse Rs. 1274.21 Crore Deduction from Telangana's Account, Citing Cooperative Federalism Principles.</h1> The Reserve Bank of India (RBI) has been instructed by the Ministry of Finance, Government of India, to reverse a deduction of Rs. 1274.21 crores from Telangana's principal account. This deduction, made in response to an income tax notice, was deemed inconsistent with the principle of cooperative federalism. The Ministry emphasized that funds from a state's Consolidated Fund should only be transferred or withdrawn following constitutional and legal procedures. The RBI's action, related to the income tax liability of Andhra Pradesh Beverages Corporation Limited, lacked the necessary legislative process. A formal letter was issued to the RBI and Telangana's government officials to address this issue.