Question

    Which of the following is the short-term loans provided

    by the RBI to the government to help it deal with any discrepancies between receipts and payments?
    A Way and means advances Correct Answer Incorrect Answer
    B Way and finance advances Correct Answer Incorrect Answer
    C Term and means advances Correct Answer Incorrect Answer
    D Finance and terms advances Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Ways and means advances is a mechanism used by Reserve Bank of India under its credit policy to provide to States, banking with it, to help them tide over temporary mismatches in the cash flow of their receipts and payments. Reserve Bank of India reduced the Ways and Means Advances (WMA) for states and union territories to Rs 47,010 crore from Rs 51,560 crore. The Government of India’s WMA limit for the first half of fiscal year 2022-23 has been set at Rs 1,50,000 crore.

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