RBI fixes H2 Ways and Means Advances limit for government at Rs 50,000 cr

The Reserve Bank of India has set the Ways and Means Advances limit for the second half of the 2026-27 financial year at Rs 50,000 crore. This decision allows the central government to borrow a certain amount of money from the RBI to manage temporary financial mismatches. The limit will help the government to cover any short-term funding gaps, which is essential for maintaining economic stability. This move by the RBI is aimed at supporting the government's financial management and ensuring smooth functioning of the economy.

Why it matters

The Reserve Bank of India has set the WMA limit to assist the central government in managing its finances. This decision aims to maintain stable liquidity in the market.

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