RBI Increases Ways and Means Advances (WMA) Limit for States and UTs
| Aspect | Details |
|---|---|
| Event | RBI increases WMA limit for State governments and Union Territories by 28% |
| New Limit | ₹60,118 crore (from ₹47,010 crore) |
| Effective Date | July 1, 2024 |
| Reason for Revision | Based on recommendations by a Group of select State Finance Secretaries and recent expenditure data |
| WMA Types | - Normal WMA: Clean advances repayable within three months |
| - Special WMA: Secured advances against Government of India dated securities | |
| Special Drawing Facility (SDF) | - SDF linked to investments in marketable securities and Auction Treasury Bills (ATBs) |
| SDF Limit for CSF/GRF | Maximum SDF limit is 50% of the lower value between outstanding balance as of the last date of the second preceding quarter and current balance in CSF/GRF |
| SDF Limit for ATBs | SDF limit set at 50% of the lower value between outstanding balance in ATBs (91/182/364 days) as of the last date of the second preceding quarter and current ATB balance |
| Implementation | Follows RBI's April 2022 review of SDF, WMA, and Overdraft (OD) schemes |
| Additional Information | Detailed State/UT-wise WMA limits available on RBI's website |