Delhi Government Signs MoU with RBI | 08 Jan 2026

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.