Ways and means advances
(WMA) is a mechanism used by Reserve Bank
of India (RBI) under its credit policy by which
provides to the States banking with it to help
them to tide over temporary mismatches in the
cash flow of their receipts and payments. These
are temporary advances (overdrafts) extended by
RBI to the government. Section 17(5) of RBI
Act allows RBI to make WMA both to the
Central and State governments. It aims to bridge
the interval between expenditure and receipts.
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