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WMA Limit for Govt of India for first half of FY 2019-20 (Apr to Sept 2019)

Apr 02, 2019: WMA Limit for Government of India for the first half of the Financial Year 2019-20 (April 2019 to September 2019) —

It has been decided, in consultation with the Government of India, that the limits for Ways and Means Advances (WMA) for the first half of the financial year 2019-20 (April 2019 to September 2019) will be ₹75,000 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

The Reserve Bank, in consultation with Government of India, will put in place a rule- based WMA limit in future, based on objective parameters.



Source: RBI

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