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Ways and Means advances
April 4 , 2019
2090 days
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- 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 will be Rs 75000 crore.
- The interest rate on WMA will be Repo Rate and overdraft will be 2% above the Repo Rate.
- RBI in consultation with Central Government can provide an overdraft facility when the WMA limit is breached.
- Ways and Means Advances is the temporary loan facility provided by the RBI to the centre and state governments.
- The WMA scheme was introduced in 1997 to meet any temporary mismatches in the receipts and payments of the government.
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