RBI Decides To Revert To Ways and Means Advances Scheme For States/UTs

1 Apr 2022 , 12:11 PM

The Reserve Bank Of India (RBI) has decided that on a review of the limits and keeping in view the gradual lifting of Covid-19 restrictions, it has been decided to revert to the WMA limits and timelines for OD for State Governments / UTs as recommended by the Advisory Committee on Ways and Means Advances to State Governments. These norms will be effective from April 01, 2022 and are subject to review. The RBI stated that The WMA limit for State Governments/UTs will be Rs 47,010 crore.

The limits for financial accommodation extended by the Reserve Bank of India to State Governments / Union Territories (UTs) through Ways and Means Advances (WMA), Special Drawing Facility (SDF) and Overdraft (OD) schemes were last reviewed and announced in October 2021. Considering the uncertainties related to the ongoing pandemic, it was decided to continue with the higher WMA limit of Rs 51,560 crore for all States, by a further period of six months i.e., up to March 31, 2022.

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