Lok Sabha Question No. 75 (STARRED), answered on 2022-02-07
Subject: Assistance from RBI
Ministry: FINANCE
Asked by: Sukhbir Singh Jaunapuria

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA STARRED QUESTION NO. †

## *75

TO BE ANSWERED ON MONDAY, THE 07 th  FEBRUARY, 2022 MAGHA 18, 1943 (SAKA)

## Assistance from RBI

†*75.  Shri Sukhbir Singh Jaunapuria:

Will the Minister of FINANCE be pleased to state:

- (a) the amount of assistance taken by the Government from the Reserve Bank of India (RBI) during the last three years and the current year so far;
- (b) whether the Government is considering to take more assistance from RBI and if so, the details thereof;
- (c) Whether the Government has considered to take the said assistance in view of slowdown in industries; and
- (d) if so the details thereof along with the process of repayment of such market or secured loans?

## ANSWER

## MINISTER IN THE MINISTRY OF FINANCE (SMT NIRMALA SITHARAMAN )

- (a) to (d ):   A Statement is placed on the Table of the House.

Statement  referred  to  in  reply  to  Lok  Sabha  Starred  Question  No. † *75  for answer  on  February  07,  2022  raised  by  Shri  Sukhbir  Singh  Jaunapuria regarding 'Assistance from RBI'

- (a) In terms of section 17(5) of the RBI Act, a facility/assistance for grant of Ways &  Means  Advance  (WMA)  and  over  draft  (OD)  is  provided  as  assistance/ temporary  loans  by  RBI  to  Central  Government  to  meet  its  temporary mismatches between expenditure and flow of receipts. The details of assistance availed by the Government of India in the last three years  and in the current year, is tabulated below:

| Aggregated amount of WMAand OD availed by the Government from RBI ( ` crore)   | Aggregated amount of WMAand OD availed by the Government from RBI ( ` crore)   | Aggregated amount of WMAand OD availed by the Government from RBI ( ` crore)   |
|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| Financial Year                                                                 | Amount of WMAand OD availed                                                    | WMAand OD repaid                                                               |
| 2018-19                                                                        | 9,55,243                                                                       | 9,55,243                                                                       |
| 2019-20                                                                        | 11,79,582                                                                      | 11,79,582                                                                      |
| 2020-21                                                                        | 3,98,990                                                                       | 3,98,990                                                                       |
| 2021-22*                                                                       | 0                                                                              | 0                                                                              |
| *WMA/OD has not been availed so far.                                           | *WMA/OD has not been availed so far.                                           | *WMA/OD has not been availed so far.                                           |

(b) & (C)  The WMA and OD facility is availed by the Government only on need basis. In the current financial year, the WMA limit though fixed at ` 1.20 lakh crore for H-1  (from  April  01,  to  September  30,  2021)  and `0 .50  lakh  crore  for  H-2  (from October  01,  2021  to  March  31,  2022),  however,  owing  to  continuous  positive balance in Government account, so far, the facility  has not been availed of.

(d) The WMA is provided as a temporary finance facility by RBI for a period of 90 days.  When  limit  of  WMA  is  exceeded  the  OD  is  provided  to  the  Central Government for periods not exceeding 10 consecutive working days. RBI retains the flexibility to revise the limit at any time, in consultation with the Government of India, taking  into  consideration  the  prevailing  circumstances.  The  interest  rate  on  WMA and overdraft to the Government for the financial year 2021-22 are  (i) Repo rate for WMA; (ii) and 2 percent above Repo Rate for Overdraft.

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