Covid-19 impact: RBI increases centre's WMA limit sharply to Rs 2 trillion

Ways and means advances (WMA) are temporary liquidity line given by the central bank to the government to meet short-term expenditure needs of the government

The Reserve Bank of India (RBI) on Monday revised up its ways and means advances (WMA) limit for the government to Rs 2 trillion from Rs 1.2 trillion announced on March 31, as the country slowly emerges from a nationwide lockdown and clamour for a stimulus package to rescue the economy becomes louder.
 

WMAs are temporary liquidity line given by the central bank to the government to meet short-term expenditure needs. The advances will have to be repaid to the RBI within 90 days. The interest is charged at the prevailing repo rate, which is now at 4.4 per cent.