RBI increases WMA limits for the State Governments/UTs to Rs 47,010 crore

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The Reserve Bank of India has increased the limit for aggregate Way and Means Advances (WMA) for the State Governments/UTs from Rs. 32,225 crore (fixed in February 2016) to Rs. 47,010 crore based on the recommendation of a committee headed by Shri Sudhir Shrivastava.
This represents an increase of about 46%.
RBI has extended the enhanced interim WMA limit of Rs.51,560 crore (60 per cent increase in the current limits allowed by the Reserve Bank during the last fiscal to help states/UTs to tide over the difficulties faced by them during the pandemic) for a further period of six months i.e., from April 1, 2021 up to September 30, 2021.
As per the RBI rules, normal WMA limits are based on a three-year average of a state's actual revenue and capital expenditure, and withdrawals beyond the limit is considered an overdraft. States pay interest linked to the repo rate on WMA withdrawals.