RBI extends Ways and Means credit score for States, UTs to Sept.

Mumbai. The Reserve Bank of India (RBI) determined to proceed with the present interim Ways and Means Advances (WMA) scheme restrict of ₹51,560 crore for all States/ UTs shall for six months i.e., as much as September 30, given the prevalence of COVID-19. Based on the suggestions of the Advisory Committee on WMA to State Governments, 2021 — chaired by Sudhir Shrivastava — the RBI had revised the WMA Scheme of States and Union Territories (UTs), it mentioned.

The WMA restrict arrived at by the Committee primarily based on whole expenditure of States/ UTs, works out to ₹47,010 crore. The RBI mentioned it will overview the WMA restrict thereafter, relying on the course of the pandemic and its affect on the economic system. The Special Drawing Facility (SDF) availed by State Governments/ UTs shall proceed to be linked to the quantum of their investments in marketable securities issued by the Government of India, together with the Auction Treasury Bills (ATBs), it mentioned.

The web annual incremental investments in Consolidated Sinking Fund (CSF) and Guarantee Redemption Fund (GRF) shall proceed to be eligible for availing of SDF, with none higher restrict. A uniform hair-cut of 5% shall be utilized available on the market worth of securities, for figuring out the working restrict of SDF each day, the central financial institution mentioned.