Financial Daily from THE HINDU group of publications
Friday, Apr 01, 2005
Financial Daily from THE HINDU group of publications Friday, Apr 01, 2005 |
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Money & Banking
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RBI & Other Central Banks WMA for Centre fixed at Rs 16,000 cr Our Bureau
Mumbai , March 31 THE Reserve Bank of India has fixed Ways and Means Advances (WMA) limit for the Government of India for the financial year 2005-06 at Rs 10,000 crore for the first half, and Rs 6,000 crore for the second. The RBI said it may trigger fresh floatation of market loans as soon as 75 per cent of the WMA limit is utilised by the Government. However, this would depend on market conditions. The interest rate for the WMA will be the level of bank rate and for overdraft, 2 per cent above the bank rate. The Government will have to maintain Rs 100 crore minimum balance with the RBI on Fridays, on June 30, and on the date of closure of the Government's financial year. On other days, the minimum balance should be not less than Rs 10 crore. As per the provisions of the Agreement dated March 26, 1997, overdrafts beyond 10 consecutive working days will not be allowed.
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