RBI Provides.....for meeting day-to-day receipt and expenditure mismatch to both Central and State Governments.

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]

RBI Provides____for meeting day-to-day receipt and expenditure mismatch to both Central and State Governments.

A	Treasury bills
B	Ways and Means advance
C	Date and securities
D	None of these

Explanation:

Detailed explanation-1: -What are Ways and means advances (WMA)? Ways and means advances are special features of the Indian economy. WMA are temporary advances given by the RBI to the centre and state governments to tide over any mismatch in receipts and payments. It was introduced in 1997 and comes under Section 17(5) of the RBI Act of 1934.

Detailed explanation-2: -The Ways and Means Advances (WMA) provided by the Reserve Bank of India to the States are governed by Section 17(5) of the Reserve Bank of India Act, 1934. This section authorises the RBI to extend WMA to the State Governments which are repayable not later than three months from the date of making the advances.

Detailed explanation-3: -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.

There is 1 question to complete.