RBI Panel Recommends 11.2% Increase In States' WMA Limit To Rs 67,839 Crore
NDTV Profit 2 hrs ago·29 Sept 2026, 6:07 pm
The Reserve Bank of India's (RBI) advisory committee has recommended a significant increase in the Ways and Means Advance (WMA) limit for state governments. This proposed hike aims to raise the aggregate limit from the current Rs 47,010 crore to Rs 67,839 crore, a rise of 11.2%. The WMA is a short-term loan facility that states can borrow from the RBI to manage their cash flow and meet temporary mismatches in receipts and payments.
This move is crucial for investors as it ensures that state governments have better access to liquidity. By increasing the borrowing limit, the RBI aims to help states meet their financial obligations more smoothly, which could improve their creditworthiness. This, in turn, may positively impact the credit ratings of state-owned entities and the broader market sentiment regarding fiscal health.
Investors should watch for the official notification from the RBI. If approved, the revised limit will likely be effective from the upcoming financial year. This adjustment is part of a broader effort to support state finances and ensure economic stability across the country.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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