The Hindu Business Line : RBI raises WMA ceiling for States

THE Reserve Bank of India (RBI) has hiked its aggregate normal ways and means advances (WMA) of State Governments by 13.53 per cent to Rs 8,140 crore effective from April 1, against the earlier limit of Rs 7,170 crore.

The minimum normal WMA limit is Rs 50 crore for any State, said an RBI release.

These revised limits have been computed by taking into account the average revenue receipts for the 2000-01, 2001-02 and 2002-03 fiscals.

After applying this average, it included a multiplication factor of 3.19 per cent for non-special category States and 3.84 per cent for special category States respectively, the release said.

The other features of WMA/overdraft scheme 2003 remain unchanged, it added.

As recommended by the Ramchandran Committee, the scheme, which came into effect from March 3, 2003 is subject to review in its totality after receipt of recommendations of the 12th Finance Commission, according to the apex bank.

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