The RBI has set the Ways and Means Advances (WMA) limit for the Government of India at ₹50,000 crore for the second half of FY27. A market loan floatation may be triggered upon 75% utilization.
Government of India's WMA Limit Fixed at ₹50,000 Crore for H2 FY27
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 period October 2026 to March 2027. WMA is a temporary overdraft facility extended by the RBI to the central government to manage mismatches between receipts and expenditures.
The RBI has indicated that it may initiate the floatation of fresh market loans when the government’s utilization of the WMA limit reaches 75% (i.e., ₹37,500 crore). This serves as a prudential threshold to ensure timely market borrowing and avoid excessive liquidity absorption pressures. The WMA mechanism is governed by the Reserve Bank of India Act, 1934, and is a standard instrument in public finance management.
This limit provides the government with short-term liquidity flexibility while maintaining fiscal discipline. Market participants will monitor WMA utilization closely as an indicator of the government’s cash flow requirements and future borrowing program intensity.