Panel proposes raising RBI's ways and means advances corpus by 11.2% to Rs 67,839 crore

A panel has proposed increasing the Reserve Bank of India's (RBI) Ways and Means Advances (WMA) corpus by 11.2% to Rs 67,839 crore. This move aims to provide the central bank with more liquidity to support the government's borrowing needs. The proposal also includes an annual review of the WMA corpus, with a cap on annual upward revisions at 4%, to ensure stability and prevent excessive growth. This could help maintain market stability and support economic growth.

Why it matters

The RBI's ways and means advances corpus increase signals easier liquidity. That could lower borrowing costs and boost investor sentiment.

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