RBI sets government’s WMA limit at Rs 25,000 crore for October-March

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Mumbai | Published: September 30, 2016 10:22:30 PM

The Reserve Bank has set the 'ways and means advances' (WMA) limit at Rs 25,000 crore for the central government for the second half of this financial year.

'WMA' are temporary advances given by RBI to government to tide over any mismatch in receipts and payments. (Reuters)‘WMA’ are temporary advances given by RBI to government to tide over any mismatch in receipts and payments. (Reuters)

The Reserve Bank has set the ‘ways and means advances’ (WMA) limit at Rs 25,000 crore for the central government for the second half of this financial year.

‘WMA’ are temporary advances given by RBI to government to tide over any mismatch in receipts and payments.

“It has been decided, in consultation with the Government of India, that the limit for Ways and Means Advances (WMA) for the second half of the financial year 2016-17 (October 2016 – March 2017) will be Rs 25,000 crore,” the central bank said in a statement.

The Reserve Bank further said that it may trigger fresh floatation of market loans when the Government of India utilises 75 per cent of the WMA limit.

The RBI retains the flexibility to revise the limits at any time, in consultation with the Government of India, taking into consideration the prevailing circumstances.

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