Rajnish Optimist 145 Questions 255 Answers 237 Best Answers 1k Points View Profile Rajnish Asked: October 13, 20202020-10-13T18:31:56+05:30 2020-10-13T18:31:56+05:30In: UPSC PRELIMS What is Ways and Means Advances (WMA)? What is Ways and Means Advances (WMA)? Explain with reference to RBI. economywma Share Facebook 1 Answer Recent Ishu Innovative 370 Questions 228 Answers 176 Best Answers 1k Points View Profile Best Answer Ishu Innovative 2020-10-13T18:36:33+05:30Added an answer on October 13, 2020 at 6:36 pm About Ways and Means Advances (WMA): The WMA are short-term loan facilities which allow the Centre and states to borrow funds from the RBI at repo rate and bridge the mismatch between expenditure and receipts. These loans have a three-month tenure, and states are allowed an overdraft of 21 days. The governments are, however, allowed to draw amounts in excess of their WMA limits, called Special Drawing Facilities. The interest on such overdraft is 2 percentage points above the repo rate. Further, no state can run an overdraft with the RBI for more than a certain period. WMA in news: Finance Ministers of three states, said that the RBI decision to allow 60 per cent higher borrowing under Ways and Means Advances (WMA) from what it was in March 30, 2020, is inadequate. 1 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What are Negotiable Warehouse Receipts (NWRs). Describe Medieval Indian History.