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.

In a landmark move reshaping Delhi's financial landscape, the Government of NCT of Delhi has entered a Memorandum of Understanding with the Reserve Bank of India. The agreement marks a shift towards fiscal prudence, aligning Delhi with national financial norms and enhancing its economic framework.

Signed at the Delhi Secretariat, the MoU facilitates the RBI's role as banker and debt manager for Delhi, enabling efficient market borrowings and investment of surplus cash. Initiated by Chief Minister Rekha Gupta, the reform is viewed as a vital correction ensuring that public funds contribute meaningfully to the city's development.

By accessing competitive interest rates through open market borrowing, the initiative is set to replace high-cost loans, thereby reducing the financial burden on citizens. The Chief Minister highlighted this agreement as a historic financial reform, fostering responsible governance, institutions, and sustainable progress for Delhi's future.

(With inputs from agencies.)