The RBI on Friday explained the current interim options Advances (WMA) limitation of Rs 51,560 crore for most countries and Union Territories will last around September 30, 2021, since the consequence of this COVID-19 pandemic continues to be predominant.

WMAs are temporary advances distributed by the RBI to this us government to wave over any mismatch in payments and receipts.

The RBI said it’s revised the WMA Scheme of both States and Union Territories (UTs) Depending on the recommendations of the Advisory Committee about WMA to state governments. The WMA limitation came by the Committee based on overall cost of States/ UTsand works out to Rs 47,010 crore.

“Since the consequence of this COVID-19 pandemic remains predominant, the current interim WMA limitation of Rs 51,560 crore for many States/ UTs will last for 6 weeks i.e., as much as September 30, 2021,” it said in an announcement.

The Reserve Bank may examine the WMA limitation afterwards, based on the class of this pandemic and its influence on the market, ” the central bank said.

It said Particular Enforcement Center (SDF) obtained by country authorities and UTs will proceed to be related to the quantum in these investments in marketable securities issued by Government of India, for example the Auction Treasury Bills (ATBs).

The net annual incremental investments at Consolidated Sinking Fund (CSF) and Guarantee Redemption Fund (GRF) will be entitled to availing SDF, with no upper limit. CSF and also GRF are reserve funds claimed by a few State Governments with all an Reserve Bank of India.

“A grey haircut 5 percent shall be implemented in the marketplace value of stocks, such as specifying the operating limitation of SDF to daily basis,” the RBI said.

interest on SDF, WMA and also Overdraft will last to be for this policy rate (Retailer ) of this Reserve Bank.