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
WMA Limit of State Governments and UTs
(Amount in ₹ crore) Sl. No State/ UTs WMA Limit 1 Andhra Pradesh 2,921 2 Arunachal Pradesh 373 3 Assam 1,716 4 Bihar 2,731 5 Chhattisgarh 1,434 6 Goa 258 7 Gujarat 3,092 8 Haryana 1,803 9 Himachal Pradesh 777 10 Jammu and Kashmir 1,298 11 Jharkhand 1,225 12 Karnataka 4,010 13 Kerala 2,308 14 Madhya Pradesh 3,450 15 Maharashtra 6,139 16 Manipur 281 17 Meghalaya 267 18 Mizoram 216 19 Nagaland 276 20 Odisha 2,099 21 Punjab 1,538 22 Rajasthan 3,585 23 Tamil Nadu 4,582 24 Telangana 2,407 25 Tripura 343 26 Uttar Pradesh 6,519 27 Uttarakhand 839 28 West Bengal 3,456 29 Puducherry 175 Total (All States/UTs) 60,118