Press Release : 2010-2011/1542
CLR Note:- The Reserve Bank of India has been decided with the Government that the Ways and Means Advance limits will changed and interest rate will also changed.
It has been decided in consultation with the Government of India that the limits for Ways and Means Advances (WMA) for the financial year 2011-12 would be:
Rs. 30,000 crore for April 01, 2011 to April 20, 2011
Rs. 45,000 crore for April 21, 2011 to June 30, 2011
Rs. 30,000 crore for July 01, 2011 to September 30, 2011
Rs. 10,000 crore for October 01, 2011 to March 31, 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:
a) Ways and Means Advances: 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 March 26, 1997 between the Government of India and the Reserve Bank of India, overdrafts beyond ten consecutive working days will not be allowed.
Alpana Killawala
Chief General Manager
Press Release : 2010-2011/1542
