Delhi Government signs MoU with RBI to strengthen financial governance

The Delhi Government on 5 January signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI), enabling the central bank to function as the banker, debt manager, and financial agent of the Government of the National Capital Territory of Delhi.

Key Features of the MoU
According to the Delhi Chief Minister’s Office, the agreement will facilitate:

• Market borrowings through State Development Loans (SDLs)
• Automatic investment of surplus cash balances
• Professional cash and treasury management
• Access to low-cost liquidity facilities through RBI mechanisms

Strengthening Fiscal Management
The MoU is expected to enhance efficiency, transparency, and discipline in Delhi’s public finance management by leveraging RBI’s institutional expertise in debt and cash management.

Within Legal and Regulatory Framework
The government clarified that the arrangement is strictly within the framework prescribed by the Central Government and the RBI Act, ensuring compliance with existing constitutional and statutory provisions.