The Reserve Bank of India on Friday upwardly revised the aggregate Ways and Means Advances (WMA) limit of state governments and Union Territories to Rs 60,118 crore effective July 1, 2024. The existing limit is Rs 47,010 crore.
The WMA are temporary advances given by the RBI to the central, state governments and UTs to tide over any mismatch in receipts and payments.
The limits have been revised based on the recommendations made by the group constituted by the central bank, consisting of select state finance secretaries to take account of the expenditure data of states for recent years.
“The revised aggregate WMA limit for State Governments/ UTs will be Rs 60,118 crore as against the existing limit of Rs 47,010 crore,” the RBI said in a statement.
The limits for financial accommodation extended by the RBI to state governments/ union territories (UTs) through Special Drawing Facility (SDF), WMA, and Overdraft (OD) schemes were last reviewed and announced on April 1, 2022.
The RBI further said the SDF availed by state governments/ UTs shall continue to be linked to the quantum of their investments in marketable securities, issued by the government, including auction treasury bills (ATBs).
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
