The Reserve Bank of India has decided the limit for Ways and Means Advances (WMA) for the second half of the financial year 2026-27, with potential fresh market loans upon reaching a certain utilization level.
The Reserve Bank of India (RBI), in consultation with the Government of India, has determined that the limit for Ways and Means Advances (WMA) for the second half of the financial year 2026-27, spanning from October 2026 to March 2027, will be ₹50,000 crore. The RBI has also proposed that fresh floatation of market loans may occur when the Government of India utilizes 75 per cent of the WMA limit.
The RBI, in conjunction with the Government of India, retains the flexibility to revise the WMA limit at any given time in response to prevailing circumstances. It is noteworthy that the interest rate on WMA/Overdraft will be as follows: WMA at the Repo Rate and Overdraft at two percent above the Repo Rate.
Source:
Reserve Bank of India
