- WMA is a tool used by RBI under its credit policy. It is used to provide advance amounts to the states to match up with the temporary mismatches in the cash flow of their receipts and payments. It is repayable in every situation, not later than three months from the date of making the advance.
- The RBI can trigger fresh floatation of market loans when the GOI utilises 75% of the WMA limit.
- The interest rate on WMA will be repo rate and for an overdraft will be 2% above the repo rate.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikant Das
Question:
a. Rs. 40,000 crore
b. Rs. 30,000 crore
c. Rs. 50,000 crore
d. Rs. 60,000 crore
