📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    What is the maximum time period given to the states to

    repay the Ways and Means Advances extended to them by the RBI?
    A 14 days Correct Answer Incorrect Answer
    B 7 days Correct Answer Incorrect Answer
    C 1 month Correct Answer Incorrect Answer
    D 3 months Correct Answer Incorrect Answer
    E 6 months Correct Answer Incorrect Answer

    Solution

    Ways and Means Advances are extended by the Reserve Bank of India to the states in order to help them meet the temporary mismatch in the cash flow. The states can repay the advance within a maximum period of 90 days. There is no such facility given to the central government by the central bank. WMA is guided by the Section 17(5) of the RBI Act 1934.

    Practice Next
    More Beepedia Questions

    Relevant for Exams:

    ask-question
    9