Reserve Bank of India said that Rs 50,000 crore has been set as the ‘Ways and Means Advances (WMA) limit for the Central government during the H2FY22, on Monday. The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilizes 75 percent of the WMA limit. According to the statement, the Reserve Bank retains the flexibility to revise the limit at any time, in consultation with the Centre taking into consideration the prevailing circumstances.
The interest rate on WMA/overdraft will be:
- For WMA: Repo Rate
- For Overdraft: Two percent above the Repo Rate
