Informist, Thursday, Sep 26, 2024

--Govt: WMA limit for Oct-Mar fixed at 500 bln rupees

NEW DELHI – The Reserve Bank of India has fixed the ways and means advances limit for the central government for Oct-Mar at 500 bln rupees, the central bank said in a release today. The limit for Apr-Sep was set at 1.50 trln rupees, and the limit for Oct-Mar last year was fixed at 500 bln rupees.

Ways and means advances are a short-term advance facility provided by the RBI to tide over temporary mismatches in the government's receipts and payments.

The RBI may trigger a fresh issue of market loans when the government utilises 75% of the ways and means advances limit, the central bank said in a separate release.

The central bank charges the prevailing repo rate as interest on the ways and means advances, and an interest of 2?ove the repo rate on overdraft beyond the ways and means advances limit. Currently, the repo rate is 6.50%. End

Reported by Shubham Rana

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.