RBI sets WMA Limit for GoI for second half of the Financial Year 2019-20 at Rs 35,000 Crore

RBI sets WMA Limit for GoI for second half of the Financial Year 2019-20 at Rs 35,000 Crore

• The Reserve Bank of India has the limits for Ways and Means Advances (WMA) for the second half of the financial year 2019-20 (October 2019 to March 2020) at Rs 35,000 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:
  • For WMA: Repo Rate
  • For Overdraft: Two percent above the Repo Rate

Points to remember:

1. Limit for WMA in Second half of FY20?
2. The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilises ________ of the WMA limit?- 75 per cent
3. Interest rate in WMA?