• Delhi signs MoU with RBI for Yamuna rejuvenation and infrastructure funding
• RBI to manage market borrowings, cash, and provide low-cost liquidity
• Funds will be directed to water supply, transport, health, and roads

In a significant move for fiscal and urban development, the Delhi government on Monday signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI) to fund projects aimed at rejuvenating the Yamuna, improving water supply, and enhancing city infrastructure.

Under the agreement, the RBI will act as the government’s banker, debt manager, and financial agent, enabling Delhi to raise funds through State Development Loans, invest surplus cash automatically, manage funds professionally, and access low-cost liquidity facilities as per guidelines set by the Government of India and the RBI Act.

Delhi Chief Minister Rekha Gupta, who also holds the finance portfolio, emphasized that all market borrowing funds will be used exclusively for capital expenditure. Priority areas include Yamuna restoration, drinking water projects, health infrastructure, public transport, roads, and flyovers.

The MoU was signed at the Delhi Secretariat, in a meeting chaired by Gupta and attended by senior officials, including Additional Chief Secretary (Finance) Bipul Pathak and Chief Secretary Rajiv Verma. Gupta described the partnership as a 'transformational milestone', signaling a shift towards fiscal discipline, institutional transparency, and infrastructure-driven growth.

Also Read: How RBI's Calculated Repo Move is Quietly Rewriting India's Credit Playbook

The collaboration aims to ensure professional financial management, improve urban development outcomes, and create sustainable solutions for the city’s pressing infrastructure challenges. By formalizing the RBI’s role in debt management and cash handling, Delhi seeks to streamline fund utilization and support long-term economic growth.

Officials said the initiative represents a decisive step away from past practices, positioning Delhi as a model for institutional fiscal prudence combined with strategic infrastructure investment.