RBI Sets H1 WMA Limit for Govt at Rs 2.5 Lakh Crore to Manage Cash Flow

• The Reserve Bank of India (RBI) has fixed the Ways and Means Advances (WMA) limit for the first half of fiscal year 2026-27 at Rs 2.5 lakh crore.
• This limit is set to help the central government manage temporary mismatches between its receipts and payments.
• The RBI may initiate fresh market loans if the government utilizes 75 percent of the WMA limit.
• The central bank retains the flexibility to adjust the WMA limit based on prevailing circumstances.
• Interest on WMA will be at the repo rate, while overdrafts will incur a 2 percent higher rate than the repo rate.