WMA Limit Decided for Government of India for October 2025 – March 2026

Reserve Bank of India, in consultation with the Government of India, has decided that the limit for Ways and Means Advances (WMA) for the second half of the financial year 2025-26 (October 2025 to March 2026) will be ₹50,000 crore. The Reserve Bank of India may trigger fresh floatation of market loans when the Government of India utilises 75 per cent of the WMA limit.

Reserve Bank of India, in consultation with the Government of India, retains the flexibility to revise the WMA limit at any time taking into consideration the prevailing circumstances.

The interest rate on WMA/Overdraft will be as under:

1. WMA: Repo Rate
2. Overdraft: Two percent above the Repo Rate

What is WMA?

WMA (Ways and Means Advances) is a temporary loan facility provided by the Reserve Bank of India (RBI) to the Central and State Governments. It is used to help the government manage short-term mismatches in their cash flow — for example, when expenditure is higher than revenue for a short period.

Who gives it?
RBI provides WMA to the government.

Why?
To cover temporary shortfalls in government’s cash balance.

WMA is like a short-term credit facility that RBI gives to the government to manage day-to-day expenses until more permanent funds (like taxes or borrowings through bonds) come in.