Document title: WMA Limit for Government of India for October 2026 – March 2027
Issuing Authority: Reserve Bank of India
Reference: Press Release 2026-2027/1192
Date: 25 September 2026
Policy Rates and Liquidity
The Reserve Bank of India, after consultation with the Government of India, has fixed the Ways and Means Advances (WMA) limit for the second half of FY 2026‑27 (October 2026 to March 2027) at ₹50,000 crore. The interest rate applicable to the WMA facility will be the prevailing repo rate. For overdraft facilities drawn against the WMA, the rate will be the repo rate plus two percentage points.
Banking and Credit
The overdraft component of the WMA facility is priced at two percent above the repo rate, providing a clear cost structure for short‑term borrowing by the Government.
Regulatory and Policy Measures
The RBI has indicated that it may trigger a fresh floatation of market loans when the Government utilises 75 per cent of the ₹50,000 crore WMA limit. Additionally, the RBI retains the flexibility to revise the WMA limit at any time, taking into account prevailing economic and fiscal circumstances.
In conclusion, the RBI’s decision sets a substantial liquidity ceiling for the Government for the October‑March period, links the cost of borrowing to the repo rate, and embeds mechanisms for additional market financing and future adjustments based on utilisation levels and macro‑economic conditions.