WMA Limit for Government of India for October 2026 – March 2027
Distilled Policy Brief
- The Reserve Bank of India, in consultation with the central government, set the Ways and Means Advances (WMA) limit at ₹50,000 crore for the second half of financial year 2026-27 (October 2026 to March 2027).
- The interest rate applicable on Overdraft under the WMA framework is fixed at two percent above the Repo Rate.
🎯 Prelims High-Yield Examination Points
WMA is a short-term cash management facility extended by the RBI, where market loan issuance can be triggered upon reaching 75 per cent utilization.
⚖️ Mains Analytical & Syllabus Linkages
Analysis of WMA as a modern fiscal management tool replacing ad-hoc treasury bills to eliminate automatic debt monetization.
🎯 UPSC Prelims Practice Drill
With reference to the Ways and Means Advances (WMA) for the Government of India, consider the following statements: 1. The WMA limit for the second half of a financial year is determined by the Reserve Bank of India in consultation with the central government. 2. The interest rate applicable on Overdraft under the WMA framework is fixed at two percent above the Repo Rate. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Both statements are correct based on the official WMA framework guidelines. The Reserve Bank of India, in consultation with the central government, sets the WMA limits, and the interest rate on Overdraft is specifically fixed at two percent above the Repo Rate.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.