The Hindu Business Line

RBI raises WMA limit for H1


The Reserve Bank of India, in consultati­on with the Government of India, has upped the limits for Ways and Means Advances (WMA) for the first half of financial year 2019-20 (April 2019 to September 2019) to ₹75,000 crore from ₹60,000 crore in the year-ago period. The central bank provides WMA to government­s to meet temporary mismatches in their receipts and payments. The interest rate on WMA is the repo rate (currently 6.25 per cent), and on overdraft it is 2 per cent above the repo rate. The RBI may trigger a fresh float of market loans when the government utilises 75 per cent of the WMA limit, the central bank said in a statement.

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