US EditionDelhi Signs Groundbreaking MoU with RBI, Reshaping Fiscal Future
Delhi will raise funds at about 7% interest via State Development Loans, replacing costly 12–13% borrowings, to boost capital spending by 135%, officials said.
- On Monday, the Government of NCT of Delhi signed a landmark MoU with the Reserve Bank of India at the Delhi Secretariat, enabling RBI to act as banker, debt manager, and financial agent for Delhi.
- Chief Minister Gupta said the pact follows sustained engagement with the Union Government and a recent meeting with Union Finance Minister Nirmala Sitharaman, aiming to modernise public financial management and address losses from idle cash and high-cost borrowing.
- Delhi will raise funds via State Development Loans at approximately 7 per cent, replace earlier 12 to 13 per cent costs, auto-invest excess cash daily through RBI, and access Ways and Means Advances and Special Drawing Facility.
- Budget 2025-26 allocates capital expenditure nearly 135 percent higher, with market borrowings exclusively funding Yamuna rejuvenation and drainage infrastructure, drinking water supply systems, hospitals and health infrastructure, and public transport and urban mobility.
- The agreement positions Delhi on par with other States and Union Territories with legislatures by integrating RBI's banking and debt systems, while officials expect stricter fiscal discipline and institutional investor participation to improve employment and quality of life.
12 Articles
12 Articles
Delhi Signs Groundbreaking MoU with RBI, Reshaping Fiscal Future
The Delhi Government has signed a historic MoU with the Reserve Bank of India to overhaul its financial management. This agreement marks a significant shift towards fiscal prudence, enabling better cash and debt management, and setting Delhi on a path of sustainable economic growth with infrastructure investments.
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The News MillHistoric financial reset for Delhi: Delhi Govt signs transformational MoU with RBI
In a historic and far-reaching reform that fundamentally reshapes Delhi's public financial management framework, the Government of NCT of Delhi on Monday signed a landmark Memorandum of Understanding (MoU) with the Reserve Bank of India. The agreement represents a decisive break from past practices and ushers Delhi into a new era of fiscal prudence, institutional discipline, and infrastructure-led economic growth, the Chief Minister's Office sai…
Delhi govt signs MoU with RBI to manage borrowings and cash flows
Delhi government has signed a significant agreement with the Reserve Bank of India. This pact allows the central bank to manage Delhi's finances, including debt and market borrowings. Chief Minister Rekha Gupta hailed it as a historic reform. The agreement brings structured RBI banking and access to financial facilities, aligning Delhi with global fiscal standards.
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