Reserve Bank of India extends enhanced WMA limits till fiscal end

Mumbai, Oct 8 (IANS) In view of the uncertainties related to the ongoing pandemic, the RBI has decided to continue with the enhanced Ways and Means Advances (WMA) limits up to March 31, 2022.

As recommended by the Advisory Committee chaired by Sudhir Shrivastava to review the WMA limits for state/UT governments, the enhanced interim WMA limits totalling Rs 51,560 crore were extended by the Reserve Bank up to September 30, 2021 to help states/UTs to tide over the difficulties faced by them during the pandemic.

The RBI also decided to continue with the liberalised measures introduced to deal with the pandemic. The measures involved enhancement of maximum number of days of OD in a quarter from 36 to 50 days and the number of consecutive days of OD from 14 to 21 days, up to March 31, 2022.

The above measures are expected to help states/UTs to manage their cash flows better.