Mumbai, April 20 (IANS) Reserve Bank on Monday enhanced the Ways and Means Advances (WMA) limit to Rs 2 lakh crore for the remaining part of the first half of 2020-21.
Accordingly, the limit has been enhanced for the period commencing from April till September, 2020.
“To tide over the situation arising from the outbreak of the COVID-19 pandemic, it has been decided, in consultation with the Government of India, that the limit for Ways and Means Advances (WMA) for the remaining part of first half of the financial year 2020-21 will be revised to Rs 2,00,000 crore,” the RBI said.
The apex bank RBI provides WMA to the central and state governments to help them to tide over temporary mismatches in the cash flow of their receipts and payments.
The move is expected to provide additional fiscal space for the Centre to invest in key social and infra sectors.