RBI fixes WMA limits for the State Governments/UTs to Rs 47,010 crore
- The Reserve Bank has decided to reduce the Ways and Means Advances (WMA) for States Governments and Union Territories (UTs) from Rs 51,560 crore to Rs 47,010 crore, considering improvement in the pandemic situation.
- These norms will be effective from April 01, 2022.
- RBI had raised the WMA limit to Rs 51,560 crore for all States/UTs in October 2021, due to the uncertainties related to Covid-19. The higher WMA was applicable till 31 March 2022.
- WMA are temporary advances given by the RBI to the government to tide over any mismatch in receipts and payments.
- WMA limit of Rs 47,010 crore was recommended by the Advisory Committee on Ways and Means Advances to State Governments, Chaired by Shri Sudhir Shrivastava.
Points to Remember:
- WMA limit for states/UTs (overall) w.e.f April 2022?- Rs. 47,010 crore