Panel recommends raising RBI's ways and means advances limit to Rs 67,839 crore

A panel has recommended increasing the Reserve Bank of India's ways and means advances (WMA) corpus by 11.2% to Rs 67,839 crore. The proposal aims to provide greater fiscal flexibility to the government.

The panel also suggested an annual review mechanism for the WMA limit, with annual upward revisions capped at 4%. The extent of revision would be determined based on the government's accounts from the preceding three years, while maintaining a floor with no reduction in the existing limit.