RBI set WMA Limit for Government of India for the first half of the Financial Year 2022-23 at Rs 1,50,000 crore
- The Reserve Bank of India has set the limit for Ways and Means Advances (WMA) for Central Govenment for the first half of the financial year 2022-23 (April 2022 to September 2022) at Rs. 1,50,000 crore.
- The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilises 75 per cent of the WMA limit.
- The interest rate on WMA/Overdraft will be:
- WMA: Repo Rate
- Overdraft: Two percent above the Repo Rate
Points to remember:
- WMA limit for central govt for April 2022 to September 2022?= Rs 1.5 Lakh Crore
- Interest rate charged by RBI on WMA given to Central Govt?= Repo Rate
Source: RBI