The Reserve Bank of India has revised the limit for Ways and Means Advances WMA from 1 20 lakh crore...........

Current GK (SBI-PO) Indian Economy

The Reserve Bank of India has revised the limit for Ways and Means Advances (WMA) from 1.20 lakh crore to ________ lakh crore.

This questions was previously asked in

SBI PO Mains (29 Jan, 2021)

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1.50

1.75

2.00

2.50

1.95

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Explanation:

- The Ways and Means Advances (WMA) is a mechanism for the Indian government to borrow from the Reserve Bank of India (RBI) to manage temporary mismatches in government receipts and expenditures.

- Recently, the RBI revised the limit for WMA which provides short-term credit support to the government.

- Out of the options provided, the correct answer is Option: 5 — From 1.20 lakh crore to 2 lakh crore.

- The revision of this limit is crucial as it helps the government manage its cash flow efficiently without seeking external funding sources immediately.

- The change reflects underlying economic factors, such as inflation, fiscal conditions, and liquidity needs of the government.

Correct Answer: Option: 3