State Government Current Affairs - 2020

New Name for Mumbai Central Station: Nana Shankarseth

On March 12, 2020, the Maharashtra Cabinet approved the proposal to rename Mumbai Central Station to Nana Shankarseth. The approved proposal is to be sent to Ministry of Railways. It is the Central Railways operating under Ministry of Railways that has the final say in the name change.

Procedure and Authority of name change

It is the state Government that usually initiates the process of name change of Railway Station. This is usually done to change the British name of the station to the local pronunciations. It is also done to honour a local leader. There are no rules or procedure by law or in constitution for the name change of the station.

After State Governments initiation with a valid reason, the railway board at the centre submits the memorandum to the Railway minister who authorizes it.

The name change of cities, town or villages should be sent by the State Government to the Home Ministry. Again, it is the Home Ministry that has final say in the name change.

Jagannath Shankarseth

He was a philanthropist and educationalist who lived between 1803 and 1865. He had high credit among Afghans and Arabs that they chose to place their treasure with him rather than the banks. He acquired great fortune from them and donated all to the public.

Along with Sir Jamsetjee Jeejeebhoy, he launched Indian Railway Association. It was because of his efforts that Railway construction began in India. He initiated proposals and the benefits of Railway construction in the country with the Britishers.

He founded Bombay Association that was the first political organization in Bombay Presidency.

RBI sets the limits for Ways and Means Advances (WMA)

The Reserve Bank of India (RBI) in consultation with the government of India has set the limits for Ways and Means Advances (WMA) for the first half of the financial year 2019-20 (April 2019 to September 2019) at Rs 75000 crore.

What is Ways and Means Advances (WMA)?

Ways and Means Advances is the temporary loan facility provided by the RBI to the centre and state governments. The WMA scheme was introduced in 1997 to meet any temporary mismatches in the receipts and payments of the government.

The WMA needs to be vacated after 90 days. The interest rate for WMA is currently charged at the repo rate. The limits for WMA are decided by the RBI and in consultation with the Government of India.

Further, the RBI provides an overdraft facility when the WMA limit is breached. The overdraft is not allowed beyond 10 consecutive working days. The interest rate on overdrafts would be 2 per cent more than the repo rate.

WMA Scheme for State Governments

For the State Governments, there are two types of WMA – Special and Normal WMA. Special WMA is provided against the collateral of the government securities held by the State Government. After the exhaustion of the special WMA limit, the State Government are provided with a normal WMA which is based on a three-year average of actual revenue and capital expenditure of the state.