Consider the following statements:begin{enumerate}item RBI in consultation with Union Government on 1 April 2014 capped the Ways and Means Advances (WMA) limits for the first half of the new financial year 2014-15 (April 2014-Sep 2014) at 35000 crore rupees.item The second half of the limit would be fixed in September 201 4.item This notification of Reserve Bank of India (RBI) is aimed at triggering fresh flotation of market loans when the government utilises 75 percent of the WMA limit.end{enumerate} Consider the above statements and choose the correct option.

BANKING GENERAL KNOWLEDGE

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Consider the following statements:

A	limits for the first half of the new financial year 2014-15 (April 2014-Sep 2014) at 35000 crore rupees.
B	is aimed at triggering fresh flotation of market loans when the government utilises 75 percent of the WMA limit.
C	1 only
D	1 and 2 only
E	1 and 3 only
F	1, 2 and 3

Explanation:

Detailed explanation-1: -Press Releases. It has been decided, in consultation with the Government of India, that the limit for Ways and Means Advances (WMA) for the second half of the financial year 2022-23 (October 2022 to March 2023) will be ₹50, 000 crore.

Detailed explanation-2: -The withdrawal above the WMA limit is considered an overdraft. A State Government account can be in overdraft for a maximum of 14 consecutive working days with a limit of 36 days in a quarter. Generally, the interest rate for overdraft is repo plus 2% given that it comes under the WMA limit.

Detailed explanation-3: -2.2 Under Section 17(5) of RBI Act, 1934, the RBI provides Ways and Means Advances (WMA) to the States banking with it to help them to tide over temporary mismatches in the cash flow of their receipts and payments.

Detailed explanation-4: -The government is required to maintain a minimum balance of ₹10 crore in its account on a daily basis and ₹100 crore on Fridays (Reddy 2002).

There is 1 question to complete.