The limits for financial accommodation extended by the Reserve Bank of India to State Governments / Union Territories (UTs) through Special Drawing Facility (SDF), Ways and Means Advances (WMA), and Overdraft (OD) schemes were last reviewed and announced on April 01, 2022. 

Ways and Means Advances

Based on the recommendations made by the Group constituted by the Reserve Bank and consisting of select state Finance Secretaries and taking into account the expenditure data of the states for the recent years, it has been decided to revise the WMA limits of the State Governments/ UTs, effective from July 01, 2024. The revised aggregate WMA limit for State Governments/ UTs will be ₹ 60,118 crore as against the existing limit of ₹ 47,010 crore. Revised State/ UT wise WMA limits are given in Annex.

Special Drawing Facility 

SDF availed by State Governments/ UTs shall continue to be linked to the quantum of their investments in marketable securities, issued by the Government, including Auction Treasury Bills (ATBs). Based on the recommendations made by the Working Group constituted by the Reserve Bank on Consolidated Sinking Fund (CSF) and Guarantee Redemption Fund (GRF), it has been decided that the maximum limit of SDF that can be availed by the States / UTs against the investments held under CSF/ GRF shall be 50 per cent of the lower of (i) outstanding balance of the funds as on the last date of the second preceding quarter, and (ii) the current balance held in CSF/ GRF. For investments held in ATBs, the maximum limit of SDF shall be 50 per cent of the lower of (i) outstanding balance in ATBs (91/182/364 days) as on the last date of the second preceding quarter, and (ii) the current ATB balance.

All other terms and conditions, applicable to financial accommodation (SDF/WMA/OD) available to the State Governments/ UTs, as stated in the RBI Press Release on ‘Review of Ways and Means Advances Scheme of State Governments/ UTs dated April 01, 2022, shall remain unchanged.

(Puneet Pancholy)     
Chief General Manager

Press Release: 2024-2025/590

Annex

WMA Limit of State Governments and UTs