The RBI has set the Ways and Means Advances (WMA) limit for the Government of India at ₹50,000 crore for H2 of FY2026-27, with market loans to be triggered at 75% utilization.
Central Government’s WMA Limit Fixed at ₹50,000 Crore
The Reserve Bank of India, in consultation with the Government of India, has fixed the limit for Ways and Means Advances (WMA) at ₹50,000 crore for the second half of the financial year 2026-27 (October 2026 to March 2027). The WMA facility allows the central government to meet temporary mismatches in receipts and expenditures.
The RBI has also reiterated that fresh floatation of market loans will be triggered when the government utilises 75% of the WMA limit, i.e., ₹37,500 crore. This mechanism is designed to prevent excessive reliance on central bank financing and to ensure timely access to market borrowings. The RBI retains the flexibility to revise the WMA limit during the period, depending on fiscal developments and cash flow projections.
WMA operations are governed by the agreement between the RBI and the Ministry of Finance, and interest is charged on daily outstanding amounts. The current limit reflects the government’s expected borrowing programme and revenue assumptions for the second half of the fiscal year. Market participants will monitor WMA utilisation as an indicator of fiscal discipline and liquidity absorption pressure in the system.
