INSUBCONTINENT EXCLUSIVE:
Government has not yet availed the Ways and Means Advances facility of RBI in this fiscalGovernment has not borrowed a single rupee in terms
to meet its mismatches between expenditure and flows of receipts.According to sources, the WMA facility has not been availed for the current
2021-22.RBI provides central government with the WMA facility as temporary finance for a period of 90 days
When the limit of WMA is exceeded, the overdraft is given for periods not exceeding 10 consecutive working days.RBI has the authority to
revise the limit at any time after consultations with the government and after considering the prevailing circumstances.What is the interest
rate for WMA and Overdraft?While the interest rate for WMA is the prevailing repo rate, which is currently 4 per cent, for overdraft the
interest rate is 2 per cent above the repo rate, i.e
6 per cent.Incidentally, government had availed the WMA and overdraft facility worth Rs 9,55,243 crore for 2018-19, while for 2019-20 it had
taken Rs 11,79,582 for the same purpose
In 2020-21 the government had taken Rs 3,98,990 crore as WMA and overdraft.
