What are ways and means advances?

What are ways and means advances?

Types: There are two types of Ways and Means Advances — normal and special. A Special WMA or Special Drawing Facility is provided against the collateral of the government securities held by the state. After the state has exhausted the limit of SDF, it gets normal WMA.

Who can avail ways and means advances?

the RBI
The Ways and Means Advances scheme was introduced to meet mismatches in the receipts and payments of the government. How does it work? The government can avail of immediate cash from the RBI, if required. But it has to return the amount within 90 days.

What is overdraft facility Upsc?

The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal. Basically, an overdraft means that the bank allows customers to borrow a set amount of money.

What is repo rate?

Repo rate refers to the rate at which commercial banks borrow money by selling their securities to the Central bank of our country i.e Reserve Bank of India (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures.

What do you mean by advances in mathematics?

Emphasizing contributions that represent significant advances in all areas of pure mathematics, Advances in Mathematics provides research mathematicians with an effective medium for communicating important recent developments in their areas of specialization to colleagues a… L. Cioletti, E.A. Silva

What are the different types of Ways and Means advances?

There are two types of Ways and Means Advances — normal and special. Special WMA or Special Drawing Facility is provided against the collateral of the government securities held by the state. After the state has exhausted the limit of SDF, it gets normal WMA. The interest rate for SDF is one percentage point less than the repo rate.

When was Ways and Means advances scheme introduced?

The Ways and Means Advances scheme was introduced in 1997. The Ways and Means Advances scheme was introduced to meet mismatches in the receipts and payments of the government. How does it work? The government can avail of immediate cash from the RBI, if required.

When was Ways and Means advance ( WMA ) introduced?

Ways and Means Advance (WMA) is a temporary finance facility provided to Government of India by RBI to accommodate temporary mismatch in the government’s receipts and payments. This is not a permanent source of financing the government’s deficit. The WMA scheme was introduced by RBI with effect from 1 st April, 1997.

About the Author

You may also like these