REGULATORY · COMPETITIVE · INDIA
RBI sets WMA limit at Rs 2.5 lakh crore
Change
The RBI fixed the Ways and Means Advances limit for H1 2026-27 at Rs 2.5 lakh crore.
Why it matters
The decision caps the central government's short-term borrowing from the RBI at Rs 2.5 lakh crore through September 2026, restricting direct liquidity support. Once 75% of the limit is used, the RBI may prompt fresh market loan issuance, making additional cash cover more likely to require market borrowing.
Implications · Who is affected · What to watch
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