Mumbai, The Reserve Bank of India on Friday increased the aggregate way money advance (WMA) limit of state governments and Union territories to Rs 60,118 crore from July 1, 2024.
The current limit is Rs 47,010 crore.
WMA is a temporary advance given by the RBI to the Centre, State Governments and Union Territories to deal with any discrepancy in receipts and payments.
The limits have been revised based on recommendations made by a group constituted by the central bank, comprising select state finance secretaries, to take into account the expenditure data of states in recent years.
"The revised total 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 limit of financial accommodation extended to State Governments/Union Territories (UTs) by the RBI through Special Drawing Facility (SDF), WMA and Overdraft (OD) schemes was last reviewed and announced on April 1, 2022.
RBI further said that the SDF received 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).
The current limit is Rs 47,010 crore.
WMA is a temporary advance given by the RBI to the Centre, State Governments and Union Territories to deal with any discrepancy in receipts and payments.
The limits have been revised based on recommendations made by a group constituted by the central bank, comprising select state finance secretaries, to take into account the expenditure data of states in recent years.
"The revised total 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 limit of financial accommodation extended to State Governments/Union Territories (UTs) by the RBI through Special Drawing Facility (SDF), WMA and Overdraft (OD) schemes was last reviewed and announced on April 1, 2022.
RBI further said that the SDF received 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).
