Mumbai: The Reserve Bank of India (RBI) on Friday fixed the limit for Ways and Means Advances (WMA) for the first half of 2026-27 at Rs 2.5 lakh crore to help the central government meet any temporary mismatch in receipts and payments.
The Reserve Bank of India may trigger fresh floatation of market loans when the central government utilises 75 per cent of the Ways and Means Advances limit, the apex bank said in a statement.
“Reserve Bank of India, in consultation with the Government of India, has decided that the limit for Ways and Means Advances (WMA) for the first half of the financial year 2026-27 (April to September 2026) will be Rs 2,50,000 crore,” it said.
The Reserve Bank of India also said it retains the flexibility to revise the WMA limit at any time, taking into consideration the prevailing circumstances.
The interest rate on WMA will be equal to the repo rate, and on overdraft, 2 per cent above the repo rate.