WMA Limit Set at Rs 50,000 crore-- RBI

September 29, 2021
Current Context: The Reserve bank of India (RBI) has set the limit for Ways and Means Advances (WMA) for central government at Rs. 50,000 crore for the second half of the financial year 2021-22 i.e. October 2021 to March 2022.
WMA Limit Set at Rs 50,000 crore-- RBI
  • 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: 

Q.1 RBI has set the limit for WMA for October 2021 to March 2022 at _____?
a. Rs. 40,000 crore
b. Rs. 30,000 crore
c. Rs. 50,000 crore
d. Rs. 60,000 crore

Free Exam Resources

Useful material to support your preparation, revision and exam planning.

Continue on BankExamsToday

Revise notes, practice questions and resume anytime.

Meet your mentor

From the Founder

Ramandeep Singh, founder of BankExamsToday

Ramandeep Singh

Banking Educator · Former Banker

Former banker and educator helping aspirants prepare for banking promotion and specialist officer exams with focused, practical guidance.

14+
Years' experience
5,000+
Selections
Ex-BoB
Banking experience