RBI raises WMA limits of States/UTs by 28% to ₹60,118 crore

RBI increases WMA limits for State governments and UTs to ₹60,118 crore, effective from July 1, 2024.

The Reserve Bank of India (RBI) on Friday increased the Ways and Means Advances (WMA) limits of State governments and Union territories to ₹60,118 crore from ₹47,010 crore.

“Based on the recommendations made by the Group constituted by the Reserve Bank and consisting of select state Finance Secretaries and taking into account the expenditure data of the states for the recent years, it has been decided to revise the WMA limits of the State Governments/ UTs, effective from July 1, 2024,” the RBI said in a circular. 

State/UT wise breakup of the WMA is available on RBI’s website. The RBI said Special Drawing Facility (SDF) availed by State Governments/ UTs will continue to be linked to the quantum of their investments in marketable securities, issued by the Government, including Auction Treasury Bills (ATBs). 

SDF, WMA and Overdraft (OD) schemes were last reviewed and announced on April 1, 2022.