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.