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RBI raises Centre's WMA advances to Rs 700 bn for July-September quarter

'WMA' are temporary advances given by the RBI to government to tide over any mismatch in receipts and payments

Press Trust of India  |  Mumbai 

RBI
The interest rate on WMA will be same as that of the prevailing repo rate

The Reserve Bank has set the 'ways and means advances' (WMA) limit at Rs 700 bn for the central government for the July-September quarter, up from Rs 600 bn in the previous quarter.

'WMA' are temporary advances given by the 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 (WMA) for the second quarter of the financial year 2018-19 (July 2018 to September 2018) will be Rs 700 bn," the 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 limit.

The 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 will be same as that of the prevailing (benchmark short-term lending rate).

First Published: Mon, July 09 2018. 22:03 IST
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