RBI allots Rs 10,000 cr to govt

MUMBAI: The Reserve Bank of India on Thursday said the limit on Ways and Means Advances (WMA) to the Government of India will be Rs 10,000 crore for the first half of fiscal 2005-06.

The limit on WMA to the Centre in the second half, starting from October 2005 and ending on March 2006, would be Rs 6,000 crore, the RBI said.

The RBI would also trigger fresh floatation of market loans after 75 per cent of the WMA limit is used by the government, depending on the market conditions, it said.

The rate of interest on WMA would be similar to that of prevailing bank rate and for advances it would two per cent over the bank rate, it added.