the modalities for setting up of the fund were subsequently discussed in the state finance secretaries conference. viii. ways and means advances to the state governments the reserve bank of india ( rbi ) has been extending ways and means advances ( wma ) to the state governments since 1937, under the provisions of section 17 ( 5 ) of the reserve bank of india act, with the objective of covering temporary mismatches in cash flows of their receipts and payments. according to the act, such advances are repayable not later than three months from the date of making that advance. the maximum amount of such advance by the rbi and the interest charged thereon are, however, not specified in the rbi act but are regulated by voluntary agreements with the state governments. at present, rbi is the banker for 26 states ( i. e. barring jammu & kashmir and sikkim ) and the union territory of puducherry. there are two types of wma viz., ( i ) normal or clean advances, which were introduced in 1937 ; and ( ii ) special or secured advances, instituted in 1953, and which are provided against the collateral of government of india securities. state - wise limits in respect of normal and special wma are fixed based on certain parameters ; these limits have been revised periodically over the years. an overdraft ( od ) occurs whenever these limits are exceeded. maximum time - period ( days ) and / or financial limits for which state governments can remain in od have been specified ; these limits have also been revised periodically. payments are suspended on behalf of the state governments in case od limits are breached. in view of the significant improvement in the cash position of the state governments, the normal wma limits which were raised periodically – usually on an annual basis – have been retained at the level prevailing since 2006 - 07. the wma limits for 26 states and the union territory of puducherry stand at rs. 9, 925 crore. ix. global financial crisis and the way forward fiscal outturn the consolidated fiscal position of the state governments witnessed significant improvement in the recent years reflecting the higher share in central transfers as a follow - up of the recommendations of the twfc, states ’ own efforts at revenue augmentation, rationalisation of revenue expenditure and the cyclical upturn in the global economy that had a ripple effect on state finances. states recorded a revenue surplus of 0. 6 per cent in 2006 - 07 for the first time since

to achieve. in conducting bank regulation and 4 / 9 bis - central bankers'speeches supervision, the federal reserve has the important responsibility of promoting the safe and sound operation of individual banks and the stability of the broader financial system. in many cases, these goals are complementary. when individual banks operate in a safe and sound manner, the banking system generally promotes the stability of the u. s. financial system. of course, these objectives require a degree of balance if we want the banking system to serve the u. s. economy and facilitate economic growth. when we promote safety and soundness - for example by raising capital requirements - that has an effect on the aggregate lending capacity of the banking system and the availability of credit, particularly for less qualified borrowers. we must approach the task of bank regulation with an understanding and appreciation of these tradeoffs, coupled with an affirmative acknowledgment that the banking system is an important driver of business formation, economic expansion, and opportunity. we have the same responsibility to understand and appreciate the tradeoffs when we exercise our supervisory authority. i am optimistic about the future of banking in the united states and believe that the banking regulators can support the banking system by adopting a more pragmatic approach. while this is a non - exclusive list, i continue to believe the areas that we should focus on should include ( 1 ) prioritizing safety and soundness, ( 2 ) renewing our commitment to regulatory tailoring, and ( 3 ) increasing transparency. 3 prioritization of safety and soundness in 2024, bank regulators were still operating under the shadow of the 2023 bank failures, particularly the failure of silicon valley bank ( svb ). the risks facing svbinterest rate and funding risks, rapid growth, and the idiosyncratic business model and concentrated customer base of the bank - have long been important issues that have been prioritized during examinations. at its root, svb's failure exposed significant flaws not only in the bank's management but also in the approach to oversight and supervision. as we approach regulatory and supervisory reform from the perspective of pragmatism, we need to take a close look at what went wrong and what could be fixed. regulatory tools to improve management are imperfect and may be limited in their effectiveness before a bank has failed, but we have great latitude to modify our approach to supervision. one pragmatic change would be to prioritize safety and soundness and deprioriti