India's RBI sets WMA limit at Rs 2.5 lakh crore
→Government debt managers must limit WMA draws to Rs 2.5 lakh crore for Apr–Sep 2026
Change
India's RBI has fixed the Ways and Means Advances (WMA) limit at Rs 2.5 lakh crore for April–September 2026, will trigger fresh market loan issuance once central government utilisation reaches 75% of the ceiling, and sets WMA interest equal to the repo rate.
Why it matters
India's RBI retains the flexibility to revise the Rs 2.5 lakh crore WMA ceiling at any time during April–September 2026. Overdraft borrowings will attract interest at two percentage points above the repo rate.
Implications
- — Debt-management and debt-issuance teams at India's Ministry of Finance must arrange market borrowing before WMA utilisation reaches 75% of the Rs 2.5 lakh crore ceiling during April–September 2026 — failure to pre-arrange borrowing risks the Reserve Bank initiating fresh market loan floatation at that threshold.
- — Treasury and accounting teams at India's Ministry of Finance must apply the repo rate to WMA interest accruals and record any overdraft exposure at repo +2 percentage points immediately — failure will produce incorrect interest charges and reconciliation failures.
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Source
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