Oct 01, 2018: RBI has informed that - it has been decided, in consultation with the Government of India, that the limits for Ways and Means Advances (WMA) for October 2018 to February 2019 of the second half of the financial year 2018-19 will be ₹ 35,000 crore and for March 2019, it will be ₹ 25,000 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 Reserve Bank retains the flexibility to revise the limit at any time, in consultation with the Government of India, taking into consideration the prevailing circumstances.
The interest rate on WMA/overdraft will be:
a. WMA: Repo Rate
b. Overdraft: Two percent above the Repo Rate
Source: Reserve Bank of India