RBI raises WMA limit to Rs 32,225 crore

KOLKATA: Reserve Bank of India has more than doubled the states' ways and means advances (WMA) for 2015-16 to Rs 32,225 crore from Rs 15,360 crore.

The interest rate on WMA will continue to be linked with the repo rate, which is 6.75 per cent at present. The interest is charged for all the days of outstanding of WMA.

The recommended limit of WMA is the largest for Uttar Pradesh at Rs 3550 crore, while the allocation for Maharashtra is Rs 3385 crore.

The WMA will generally be restricted up to a maximum of three months from the date of making the advance. In case WMA outstanding continues for more than three months from the date of such advance, an additional one per cent over repo rate is being levied.