< RBI sets limit for Ways and Means Advances | Current Affairs, Current Affairs 2019

RBI sets limit for Ways and Means Advances

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RBI sets limits for Ways and Means Advances (WMA) for the first half of the financial year 2019-20 (April 2019 to September 2019) will be Rs 75000 crore.

The Reserve Bank of India, in consultation with the Government of India, has decided that the limits for Ways and Means Advances (WMA) for the first half of the financial year 2019-20 (April 2019 to September 2019) will be Rs 75000 crore. The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilises 75 per cent of the WMA limit. The Reserve Bank retains the flexibility to revise the limit at any time, in consultation with the Government of India, taking into consideration the prevailing circumstances. The interest rate on WMA will be Repo Rate and overdraft will be 2% above the Repo Rate. The Reserve Bank, in consultation with Government of India, will put in place a rule- based WMA limit in future, based on objective parameters.

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