| Aspect | Details |
|---|---|
| Event | Delhi Government signs MoU with RBI |
| Date | Recently announced (exact date not specified) |
| Parties Involved | Delhi Government and Reserve Bank of India (RBI) |
| Purpose | Align Delhi's financial governance with national fiscal practices |
| Key Provisions | - RBI to manage Delhi's banking, cash flows, and public debt |
| - Facilitates State Development Loans and low-cost liquidity facilities | |
| - Introduces professional cash management practices | |
| Significance | - Major reform in Delhi's fiscal administration |
| - Strengthens fiscal discipline and transparency | |
| - Supports long-term financial sustainability | |
| Historical Context | Delhi previously lacked structured RBI support despite being the national capital. |
| RBI's Role | Acts as banker, debt manager, and financial agent for state governments |
| Key Highlight | First time Delhi will operate under RBI's complete financial management framework |
| Objective | Improve efficiency, reduce borrowing costs, and ensure fiscal alignment |
| Relevant Question | Q. Which institution will now act as banker and debt manager for the Delhi Government? |
| Answer | C. Reserve Bank of India |
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