AgenciesThe Reserve Bank of India has enhanced the temporary liquidity limit for states and union territories by about 46% to help them tide over their cash flow mismatches.
The revision of the limit was recommended by an advisory panel formed by the central bank to review the matter.
The limit was last enhanced in February 2016 under the ways and means advance (WMA) mechanism.
The new limit has been fixed at Rs 47,010 crore, compared with the previous Rs 32,225 crore.
WMA helps state governments and union territories address their temporary mismatches in the cash flow of their receipts and payments.
Further, RBI has also decided to continue the enhanced interim WMA limit of Rs 51,560 crore offered to tide over mismatches arising due to the pandemic-led economic stress for another six months to September 30, 2021.
The revision of the limit was recommended by an advisory panel formed by the central bank to review the matter.
The limit was last enhanced in February 2016 under the ways and means advance (WMA) mechanism.
The new limit has been fixed at Rs 47,010 crore, compared with the previous Rs 32,225 crore.
WMA helps state governments and union territories address their temporary mismatches in the cash flow of their receipts and payments.
Further, RBI has also decided to continue the enhanced interim WMA limit of Rs 51,560 crore offered to tide over mismatches arising due to the pandemic-led economic stress for another six months to September 30, 2021.
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