RBI enhances temporary liquidity limit for states, UTs by around 46%

 The Reserve Bank of India (RBI) has enhanced the temporary liquidity limit for states and union territories by about 46% to help them tide over their cash flow mismatches.

The central bank provides this support to governments under its ways and means advances (WMA) mechanism. The new limit has been fixed at Rs 47,010 crore, compared with the previous Rs 32,225 crore.


RBI also said that the interim WMA limit of Rs 51,560 crore would be extended for another six months to September 30, 2021. 

These measures would address any temporary mismatches in cash flow of receipts and payments of local governments.

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