RBI Sets WMA Limit for Government of India at ₹2,50,000 Crore

RBI Press Releases

Published March 27th, 2026

Detected March 28th, 2026

Summary

The Reserve Bank of India, in consultation with the Government of India, has set the Ways and Means Advances (WMA) limit for the first half of FY 2026-27 (April-September 2026) at ₹2,50,000 crore. The RBI may trigger market loan issuances if 75% of the WMA limit is utilized.

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What changed

The Reserve Bank of India (RBI) has announced the Ways and Means Advances (WMA) limit for the Government of India for the period of April to September 2026. The limit has been set at ₹2,50,000 crore. The RBI also stated that it may initiate fresh floatation of market loans if the Government utilizes 75% of this WMA limit. The interest rates for WMA and overdrafts are set at the Repo Rate and Repo Rate plus two percent, respectively.

This announcement provides clarity on the government's short-term borrowing facility for the specified period. Compliance officers in financial institutions that interact with government borrowing mechanisms should note the established limit and the conditions under which market loans may be triggered. While this is a notice regarding government finance, it impacts the broader financial market's liquidity and borrowing dynamics. No specific compliance actions are required for external entities, but awareness of these parameters is important for financial planning and market analysis.

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Press Releases

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| Date : Mar 27, 2026 | |
| WMA Limit for Government of India for April - September 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 first half of the financial year 2026-27 (April to September 2026) will be ₹2,50,000 crore.

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

(Brij Raj)
Chief General Manager

Press Release: 2025-2026/2342 | | Reserve Bank of India, in consultation with the Government of India, has decided that the limit for Ways and Means Advances (WMA) for the first half of the financial year 2026-27 (April to September 2026) will be ₹2,50,000 crore.

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:

WMA: Repo Rate
Overdraft: Two percent above the Repo Rate (Brij Raj) Chief General Manager

Press Release: 2025-2026/2342 |
| Reserve Bank of India, in consultation with the Government of India, has decided that the limit for Ways and Means Advances (WMA) for the first half of the financial year 2026-27 (April to September 2026) will be ₹2,50,000 crore.

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: