RBI sets Rs35,000 cr limit for ways and means advances for first half of FY15
RBI says it may trigger fresh floatation of market loans when the govt utilises 75% of the WMA limit
Mumbai: The Reserve Bank of India (RBI) has set a Rs35,000 crore limit for ways and means advances (WMA) for the first half of 2014-15, the central bank said on its website.
“The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilises 75% of the WMA limit," RBI said.
RBI lends to the government under WMA to help it tide over temporary mismatches in receipts and payments. Government pays RBI interest at the repo rate (currently at 8%) for these loans, while overdrafts are charged 2% above the repo rate (10%).
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