Consider the following statements about Ways and Means Advances (WMA):
1. WMA is a provision in which the Reserve Bank of India provides long-term loans to the State Governments/UT Governments and Central Government.
2. WMA is a provision in which the Reserve Bank of India provides 5 short-term loans to the State Governments/UT Governments and Central Government.
3. WMA was introduced in 1997.
4. Interest rate charged by the RBI on WMA is the same as the bank rate.
Which of the statements given above is/are correct?

Question

Consider the following statements about Ways and Means Advances (WMA):

1. WMA is a provision in which the Reserve Bank of India provides long-term loans to the State Governments/UT Governments and Central Government.

2. WMA is a provision in which the Reserve Bank of India provides 5 short-term loans to the State Governments/UT Governments and Central Government.

3. WMA was introduced in 1997.

4. Interest rate charged by the RBI on WMA is the same as the bank rate.

Which of the statements given above is/are correct?

Accepted Answer

Answer: 2 and 3.