It has been decided in consultation with the Government of India that the limits for Ways and Means Advances (WMA) for the first half of the financial year 2012-13 would be as under:
- ` 50,000 crore for April 01, 2012 to June 30, 2012.
- ` 45,000 crore for July 1, 2012 to September 30, 2012.
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:
- WMA : Repo Rate
- 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 ` 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 `10 crore on other days.
As per the provisions of the agreement dated March 26, 1997 between the Government of India and the Reserve Bank of India, overdrafts beyond ten consecutive working days will not be allowed.
The WMA limits for the second half of the financial year 2012-13 would be fixed in September 2012.
Ajit Prasad
Assistant General Manager
Press Release : 2011-2012/1570
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