Contemplating the uncertainties associated to COVID-19, the RBI had raised the WMA restrict to Rs 51,560 crore for all states. The upper WMA was relevant until March 31, 2022.
On a overview of the bounds and holding in view the gradual lifting of COVID-19 restrictions, RBI mentioned it has been determined to revert to the WMA limits and timelines for Over Draft (OD) for state governments / UTs as really useful by the Advisory Committee on Methods and Means Advances to State Governments.
“The WMA restrict for State Governments/UTs shall be Rs 47,010 crore,” it mentioned.
These norms shall be efficient from April 1, 2022 and are topic to overview.
The RBI additional mentioned the Particular Drawing Facility (SDF) availed by state governments/ UTs shall proceed to be linked to the quantum of their investments in marketable securities issued by the Authorities of India, together with Public sale Treasury Payments (ATBs).
Rate of interest on SDF, WMA and OD shall proceed to be linked to the coverage price of the Reserve Financial institution — the repo price.
Curiosity shall be charged for all the times the advance stays excellent, the central financial institution added.
The restrict for WMA for the Authorities of India for the primary half of the monetary 12 months 2022-23 has been set at Rs 1,50,000 crore.