RBI Augments Ways And Means Advances For State Governments And Union Territories.

January 2026: The limits for financial accommodation extended by the Reserve Bank of India to the State Governments / Union Territories (UTs) through Special Drawing Facility (SDF), Ways and Means Advances (WMA), and Overdraft (OD) facilities were last reviewed and announced on June 28, 2024.

Consequent on Reserve Bank entering into an agreement with the Government of National Capital Territory of Delhi (GNCTD) on January 05, 2026, the general banking business of GNCTD shall be carried out by the Reserve Bank with effect from today – January 09, 2026.

The WMA limit for GNCTD have been fixed at ₹890 crore, effective from January 09, 2026. Accordingly, the revised aggregate WMA limit for State Governments / UTs will be ₹61,008 crore as against the existing limit of ₹60,118 crore.

However, Special Drawing Facility (SDF) availed by State Governments/ UTs shall continue to be linked to the quantum of their investments in marketable securities, issued by the Government, including Auction Treasury Bills (ATBs). Based on the recommendations made by the Working Group constituted by the Reserve Bank on Consolidated Sinking Fund (CSF) and Guarantee Redemption Fund (GRF), it has been decided that the maximum limit of SDF that can be availed by the States / UTs against the investments held under CSF/ GRF shall be 50% of the lower of:

• outstanding balance of the funds as on the last date of the second preceding quarter,

• the current balance held in CSF/ GRF. For investments held in ATBs, the maximum limit of SDF shall be 50% of the lower of (i) outstanding balance in ATBs (91/182/364 days) as on the last date of the second preceding quarter, and (ii) the current ATB balance.

State/UT wise Ways And Means Advances (WMA) limits are given as follows:

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