RBI sets WMA Limit for Govt at Rs 75000 crore for first half of FY20

RBI sets WMA Limit for Govt at Rs 75000 crore for first half of FY20

• The Reserve Bank of India has set the limits for Ways and Means Advances (WMA) for the first half of the financial year 2019-20 at ₹75,000 crore. This is for April 2019 to September 2019). 
• The Reserve Bank makes advances to the Central and state governments to remove the temporary mismatch in the cash flows. Such advances are termed as ‘ways and means advances’ (WMA).
• The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilises 75 percent 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:

1. WMA Full form
2. WMA for first half of FY20?
3. Reserve Bank may trigger fresh floatation of market loans when the Government of India utilises ____ of the WMA limit?- 75 percent