WMA Limit for the first quarter of the Financial Year 2018-19 (April 2018 to June 2018) will be Rs 60,000 crore

It has been decided, in consultation with the Government of India, that the limits for Ways and Means Advances (WMA) for the first quarter of the financial year 2018-19 (April 2018 to June 2018) will be Rs 60,000 crore.

The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilises 75 per cent of the WMA limit.

The Reserve Bank retains the flexibility to revise the limit at any time, in consultation with the Government of India, taking into consideration the prevailing circumstances.

The interest rate on WMA/overdraft will be:

a. WMA: Repo Rate

b. Overdraft: Two percent above the Repo Rate

The WMA limit for the second quarter of the financial year 2018-19 will be fixed in June 2018.

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