Current Affairs - Banking - Discussion

The RBI increased the Ways and Means Advances (WMA) limit for State governments and Union Territories (UTs) by 28%, raising it from ₹47,010 crore to ₹60,118 crore. This adjustment aims to assist States and UTs in managing temporary mismatches in their cash flow, based on recommendations from State Finance Secretaries and recent expenditure data. The revised limit underscores RBI's proactive measures to support regional financial liquidity during economic fluctuations and fiscal challenges.