RBI temporarily retains WMA limit at Rs 20,000 cr

The Reserve Bank of India (RBI) has temporarily enhanced the Ways and Means Advance (WMA) for government to Rs 20,000 crore for the second half of the fiscal 2008-09 as against the limit of Rs 6,000 to meet mismatches between payments and receipts.

“The temporary enhancement of the limit of WMA will help meet the unanticipated mismatches between government payments and receipts arising from the cancellation of two auctions scheduled for the month of October 2008, and the bunching of expenditure following the supplementary demand for grants,” the finance ministry said in a statement.

RBI, in consultation with the government, decided to retain the limit for the WMA at Rs 20,000 crore for the second half of the current fiscal year for a temporary period till December 31, 2008.