Markets

RBI relaxes WMA relaxations to states

Mumbai: The Reserve Bank has extended the relaxations offered to state governments with respect ways and means advances or WMA- a temporary overdraft to meet revenue mismatches by another six months to March 31,2020.

RBI, it may be recalled had increased the WMA limit of the State governments and union territories by 60% over and above the level as on March 3120 to provide them greater flexibility in undertaking COVID-19 containment and mitigation measures, and to enable them to plan their market borrowings.

RBI also increased the number of days for which a state or an union territory can be in overdraft continuously to 21 working days from 14 working days. Also the number of days for which they can be in overdraft in a quarteris increased to 50 working days from 36 working days.

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