New Delhi, Jan. 6 -- The Reserve Bank of India (RBI) has entered into an agreement with the Government of the National Capital Territory of Delhi (GNCTD) under Section 21A(1) of the RBI Act, 1934, under which the central bank will undertake the general banking business of the Delhi government and manage its rupee public debt.

The agreement will come into effect from January 9, 2026.

With this arrangement, Delhi will align with other states in adopting a formal, RBI-led framework for managing government finances, borrowings and public funds.

Shift to Structured Cash and Debt Management

Under the agreement, the RBI will serve as the official banker to the GNCTD, managing cash balances, facilitating market borrowings and investing surplu...