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RBI raises WMA limit for central government

India covid-19 outbreak 2020 Government
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WMA is a temporary liquidity arrangement with the central bank, which enables the Centre and states to borrow money up to 90 days from the RBI to tide over their mismatches between revenues and expenditure Reserve Bank Of India (RBI) on Monday raised the amount that the central government can borrow from the monetary authority for the short- term to ₹2 lakh crore for the first half of the fiscal year 2020-21.

The so-called Ways and Means Advances was fixed at ₹1.2 lakh crore rupees as on 31 March versus ₹75,000 crore in the April-September period of the previous fiscal.

The limit was raised to tide over the situation arising from the outbreak of the Covid-19 pandemic, RBI said in its statement.

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