The Delhi government has entered into a Memorandum of Understanding (MoU) with the Reserve Bank of India, authorising the RBI to act as the government’s banker, debt manager, and financial agent.
Under the agreement, the Delhi government will be able to raise funds through State Development Loans, invest surplus cash automatically, adopt professional cash management practices, and access low-cost liquidity facilities, in line with the Government of India framework and provisions of the RBI Act.
Chief Minister Rekha Gupta, who also oversees the finance department, termed the MoU a transformative and overdue reform that earlier administrations had not implemented.
