RBI publishes advisory committee report on Ways and Means Advances to state governments
The Reserve Bank of India on 29 September 2026 released the report of its Advisory Committee on Ways and Means Advances to State Governments, chaired by I S N Prasad. Reports say it suggests a higher aggregate limit and a shorter overdraft period.
The Reserve Bank of India (RBI) on 29 September 2026 released the report of its Advisory Committee on Ways and Means Advances (WMA) to State Governments. The committee was chaired by I S N Prasad, a former Additional Chief Secretary of the Government of Karnataka. WMA is short-term credit the RBI gives state governments to bridge temporary gaps between their receipts and payments.
What the RBI said
According to the RBI’s press release, the committee was asked to review the state-wise WMA limits and other financial accommodation facilities available to the states. The press release says the committee has made various recommendations, which the RBI will examine. The recommendations are not yet RBI decisions. The press release itself gives no figures.
What the report is reported to recommend
The RBI’s report file could not be opened for this article. The points below come from news reports of the report, and the figures have not been checked against the report itself.
- Higher aggregate limit. The committee reportedly suggests raising the aggregate WMA limit for states from ₹61,008 crore to ₹67,839 crore, an increase of 11.2 per cent.
- Shorter overdraft period. The maximum number of consecutive working days a state can stay in overdraft would fall from 14 to 10, according to the reports. They describe the aim as encouraging discipline and better assessment of liquidity needs.
- Borrowing spread through the year. The panel reportedly asks states to spread market borrowings more evenly across the year rather than concentrating them in the last quarter.
Key facts
| Item | Detail |
|---|---|
| Report | Report of the Advisory Committee on Ways and Means Advances to State Governments |
| Released by | Reserve Bank of India |
| Release date | 29 September 2026 |
| Chair | I S N Prasad |
| Aggregate limit (reported) | ₹61,008 crore now; ₹67,839 crore suggested |
| Consecutive overdraft days (reported) | 14 now; 10 suggested |
| Status | Recommendations to be examined by the RBI |
Basis of these figures
The release date, the committee’s chair and terms of reference, and the statement that the RBI will examine the recommendations are from the RBI’s press release of 29 September 2026 and the report’s publication page. The figures and recommendations in the section above are from news reports by Reuters, Bhasha via ThePrint Hindi and IndexBox. Read the RBI’s report for the full text.