The Reserve Bank of India (RBI) in consultation with the government of India has set the limits for Ways and Means Advances (WMA) for the first half of the financial year 2019-20 (April 2019 to September 2019) at Rs 75000 crore. The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilizes 75% of the WMA limit.
What does WMA actually means?
- WMA is the temporary loan facility provided by the RBI to the center and state governments.
- The WMA scheme was introduced in 1997 to meet any temporary mismatches in the receipts and payments of the government.