Ways and Means Advances scheme of State Governments and UTs

27 April 2021 Current Affairs:The RBI decided to continue with the present intervening time Ways and Means Advances (WMA) scheme restrict of ₹51,560 crores for all States/ UTs shall for six months i.e., up to September 30, given the incidence of COVID-19.

Highlights:
♦ Ways and capability advances (WMA) is a mechanism used by way of RBI below its credit coverage to grant to States, banking with it, to assist them tide over transient mismatches in the money drift of their receipts and payments.
♦ This is guided underneath Section 17(5) of the RBI Act, 1934.
♦ Based on the tips of the Advisory Committee on WMA to State Governments, 2021 (chaired via Sudhir Shrivastava), the RBI had revised the WMA Scheme of States and Union Territories (UTs)
♦ The WMA restriction arrived at with the aid of the Committee based totally on a total expenditure of States/ UTs, works out to be ₹47,010 crores.
♦ The Reserve Bank stated it would evaluation the WMA restrict thereafter, depending on the direction of the pandemic and its impact on the economy.
 

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