Chief Minister Rekha Gupta of Delhi inked a Memorandum of Understanding (MoU) with the Reserve Bank of India, allowing the Central Bank to serve as the financial agent, debt manager, and banker for the government of the National Capital Territory (NCT) of Delhi. This partnership aims to streamline market borrowings for infrastructure projects through State Development Loans.
The agreement empowers the Reserve Bank of India to manage the financial affairs of the Delhi government, including market borrowings through State Development Loans. Chief Minister Gupta acknowledged Prime Minister Narendra Modi for his leadership and support in establishing an independent and transparent banking system in Delhi in line with national fiscal standards.
Under the MoU, the RBI will assist the Delhi government in investing surplus cash, professional cash management, and accessing low-cost liquidity facilities, adhering to the regulations set by the Government of India and the RBI Act. The signing ceremony took place at the Delhi Secretariat, with the Chief Minister and Bipul Pathak, Additional Chief Secretary (Finance) of the Delhi government, leading the discussions.
Chief Minister Gupta, who also oversees the Finance portfolio in the Delhi Government, hailed the MoU as a significant step forward and a much-needed reform that previous administrations overlooked. She emphasized the importance of fiscal discipline, transparency, and sustainable financial practices for the benefit of Delhi’s residents.
Key provisions of the MoU include automatic investment of surplus funds, access to Ways and Means Advances and Special Drawing Facilities, and market borrowings at competitive rates through State Development Loans. This collaboration positions Delhi on par with other states and union territories, leveraging the RBI’s expertise in banking, cash management, and debt management.
The Chief Minister highlighted that this financial reform is the result of ongoing dialogues with the Union Government and recent discussions with Union Finance Minister Nirmala Sitharaman. Following a Government of India notification, effective from January 9, 2026, the Public Accounts of the Government of NCT of Delhi have been segregated from the Public Accounts of the Government of India, granting Delhi an autonomous banking and borrowing framework.
