National Current Affairs
Delhi Government Signs MoU with RBI
- 08 Jan 2026
- 2 min read
Why in News?
The Delhi Government signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI) to enhance financial governance and fiscal management for the National Capital Territory of Delhi.
Key Points
- RBI Role: The agreement enables the RBI to act as the official banker, debt manager, and financial agent for the Delhi Government.
- Functions Under MoU: RBI will manage market borrowings through State Development Loans (SDLs), automatic investment of surplus cash, professional cash management, and access to low‑cost liquidity facilities.
- Capital Expenditure: Funds raised through market borrowings will be used exclusively for capital expenditure, with priority areas including Yamuna rejuvenation, water supply, transport, and health infrastructure.
- Historic Reform: Chief Minister Rekha Gupta described the MoU as a historic correction in Delhi’s financial governance that will end years of ad‑hoc and costly financial practices.
- Benefit: By integrating the RBI’s systems, the Delhi Government can now raise funds at competitive market rates and use surplus funds efficiently.
- Fiscal Discipline: The move is expected to strengthen fiscal discipline, transparency, and long‑term financial sustainability of the Delhi Government’s finances.
