Question

The legal basis for RBI providing WMA to Central and State Governments is:

• A. Section 17(1)
• B. Section 17(5)
• C. Section 22(1)
• D. Section 33

Answer 1

Answer:

B. Section 17(5)

Section 17(5) of the RBI Act, 1934 empowers the RBI to grant advances (WMA) to the Central and State Governments. These advances help governments meet temporary mismatches in cash flow.