WMA Limits for Government of India for the Second Half of the Financial Year 2013-14 at Rs 20000 crore

It has been decided, in consultation with the Government of India, that the limits for Ways and Means Advances (WMA) for the second half of the financial year 2013-14 (October 2013- March 2014) would be Rs 20,000 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 would retain the flexibility to revise the limits 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 minimum balance required to be maintained by the Government of India with the Reserve Bank of India will not be less than Rs 100 crore on Fridays, on the date of closure of Government of India's financial year and on June 30, i.e., closure of the annual accounts of the Reserve Bank of India and not less than Rs 10 crore on other days.

As per the provisions of the agreement dated 26 March 1997 between the Government of India and the Reserve Bank of India, overdrafts beyond ten consecutive working days will not be allowed.

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