NewzVille Desk
Delhi Government has signed a Memorandum of Understanding (MoU) with the Reserve Bank of India, bringing the national capital under the RBI’s full banking, cash management and debt framework for the first time.
In a statement, the Delhi Chief Minister’s office said that the MoU enables the RBI to function as the banker, debt manager, and financial agent of the Government of Delhi. It said that the MoU will facilitate market borrowings through State Development Loans, automatic investment of surplus cash, professional cash management, and access to low-cost liquidity facilities.
It is strictly within the framework prescribed by the central government and the RBI Act. Chief Minister Rekha Gupta said that this agreement marks a historic correction in Delhi’s financial governance. She described the MoU as a transformational milestone and a long-overdue reform that previous governments failed to initiate. She added that the Delhi Government has placed fiscal discipline, transparency, and long-term sustainability at the core of governance.
The Chief Minister further stated that, despite being the nation’s capital, Delhi was denied the benefits of structured RBI banking and market borrowings for years. She added that the previous governments never showed the intent or vision to adopt globally accepted norms of fiscal prudence. The MoU was signed at a meeting held at the Delhi Secretariat.
