RBI raises Centre’s WMA advances to Rs 70,000 crore for July-September quarter

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Mumbai | July 09, 2018 9:10 PM

The Reserve Bank has set the 'ways and means advances' (WMA) limit at Rs 70,000 crore for the central government for the July-September quarter, up from Rs 60,000 crore in the previous quarter.

RBI raises Centre’s WMA advances to Rs 70,000 crore.

The Reserve Bank has set the ‘ways and means advances’ (WMA) limit at Rs 70,000 crore for the central government for the July-September quarter, up from Rs 60,000 crore in the previous quarter. ‘WMA’ are temporary advances given by the 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 limits for Ways and Means Advances (WMA) for the second quarter of the financial year 2018-19 (July 2018 to September 2018) will be Rs 70,000 crore,” the RBI said in a statement. It further said that the central bank may trigger fresh floatation of market loans when the government utilises 75 per cent of the WMA limit.

The RBI retains the flexibility to revise the limit at any time, in consultation with the government, taking into consideration the prevailing circumstances. The interest rate on WMA will be same as that of the prevailing repo rate (benchmark short-term lending rate).

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