RBI says limit for Ways and Means Advances for first half of FY26 will be Rs 1.5 lakh crore

Reserve Bank of India (RBI) stated yesterday that it has been decided, in consultation with the Government of India, that the limit for Ways and Means Advances (WMA) for the first half of the financial year 2025-26 (April to September 2025) will be Rs 1,50,000 crore. The may trigger fresh floatation of market loans when the Government of India utilises 75 per cent of the WMA limit. RBI, in consultation with the Government of India, retains the flexibility to revise the limit at any time taking into consideration the prevailing circumstances. The interest rate on WMA will be Repo Rate and for Overdraft it will beTwo percent above the Repo Rate.