RBI increases WMA limit of states, UTs by 30%, relaxes export rules

The central bank also said banks don't need to activate countercyclical capital buffers (CCyB) for one more year, which means the banks can utilize the capital earmarked for the buffer

The Reserve Bank of India (RBI) has decided to increase the Ways and Means Advances (WMA) limit for state governments and Union Territories by 30 per cent till September 30, and allowed exporters six months extra to realise their export proceeds, in a bid to deal with the economic fallout of the coronavirus pandemic.

The central bank also said banks didn’t need to activate countercyclical capital buffers for one more year. This means banks can utilise the capital earmarked for the buffer.

 Relaxing the export norms, the RBI said exporters could now take 15 months to realise and repatriate their export proceeds,