RBI extends States Ways and Means credit

The Reserve Bank of India (RBI) decided to continue with the existing interim Ways and Means Advances (WMA) scheme limit of ₹51,560 crore for all States/ UTs shall for six months i.e., up to September 30, given the prevalence of COVID-19. The RBI would review the WMA limit thereafter, depending on the course of the pandemic and its impact on the economy.

Sudhir Shrivastava Advisory Committee on Ways and Means Advances (WMA)
Based on the recommendations of the Advisory Committee on Ways and Means Advances (WMA) to State Governments, 2021 (chaired by Sudhir Shrivastava) the RBI had revised the WMA Scheme of States and Union Territories (UTs).
​
About RBI Ways and Means Advances (WMA)
The Reserve Bank of India (RBI) gives temporary loan facilities to the central and state governments. This loan facility is called Ways and Means Advances (WMA). The Ways and Means Advances scheme was introduced in 1997. The Ways and Means Advances scheme was introduced to meet mismatches in the receipts and payments of the government. The government can avail of immediate cash from the RBI, if required.