RBI sets central govt’s Ways, Means Advances limit at Rs 50,000 cr for 2nd half of FY26

The Reserve Bank of India (RBI) has said the limit for Ways and Means Advances (WMA) for the central government for the second half of the financial year 2025-26 will be 50,000 crore rupees. The WMA is a temporary advance given by the RBI to the central, state governments and Union Territories to tide over any mismatch in receipts and payments.
 
The Central bank in a statement yesterday said, the WMA has been decided in consultation with the Central government. It added that Reserve Bank of India may trigger fresh floatation of market loans when the Centre utilises 75 per cent of the WMA limit. Both RBI and Government, retains the flexibility to revise the WMA limit at any time taking into consideration the prevailing circumstances. The interest rate on WMA will be the prevailing repo rate and on overdraft it will be 2 per cent above the repo rate.