RBI Governor urges states to adopt prudent borrowing, quality spending for fiscal stability
Reserve Bank of India (RBI) Governor Sanjay Malhotra has urged state governments to adopt prudent borrowing strategies, improve the quality of public expenditure and strengthen cash management practices to safeguard their fiscal health over the longer term.
Addressing the 36th Conference of State Finance Secretaries in Mumbai, the Governor also advised states to make effective use of the State Level Bankers' Committee (SLBC) forum. He also encouraged state governments to onboard the Unified Lending Interface (ULI) and use Programmable Central Bank Digital Currency (P-CBDC) for direct benefit transfers (DBT).
The RBI said the conference was attended by finance secretaries from 27 states and three Union Territories, along with senior officials from the Union Finance Ministry, the Controller General of Accounts and the Comptroller and Auditor General of India. The conference reviewed states’ market borrowings, short-term financial accommodation provided by the RBI and the adoption of a benchmark issuance strategy for state government securities.
