RBI Sets Rs 2.5 Lakh Crore WMA Limit for 2026-27

The Reserve Bank of India has established a Ways and Means Advances limit of Rs 2.5 lakh crore for the first half of 2026-27 to bridge temporary government financial gaps. The RBI can issue market loans if 75% of this limit is used, with adjustments possible as situations change.

The Reserve Bank of India (RBI) announced a Rs 2.5 lakh crore limit for its Ways and Means Advances (WMA) for the first half of the financial year 2026-27. This decision aims to assist the central government in managing short-term discrepancies between revenue and expenditures.

If the central government exhausts 75% of the WMA limit, the RBI will consider issuing new market loans. This measure could be crucial in ensuring consistent financial operations during the specified period.

The RBI retains the right to adjust the WMA limit at any point based on current economic conditions. Furthermore, the interest rates on WMA will align with the repo rate, while overdrafts will bear a 2% higher rate.

(With inputs from agencies.)