Mumbai, Apr 19 (UNI) In consultation with the Centre, the Reserve Bank of India (RBI) today set the quarterly limit of Ways and Means Advances (WMAs) to the Union Government for the fiscal year of 2006-07.
For the first quarter (Apr-June) the WMA limits was fixed at Rs 20,000 crore, for Second quarter (July-Sept) Rs 10,000 crore, for third quarter (Oct-Dec) Rs 6,000 crore and for Fourth quarter (Jan-Mar) Rs 6,000 crore.
The RBI would retain the flexibility to revise the limits any time in consultation with the government taking into consideration the transitional issues and prevailing circumstances, a release said.
The interest rate on WMA will be at Repo Rate of 6.5 per cent and that on Overdraft will be at Repo Rate plus two per cent, the release added.
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