The Delhi Government and the Reserve Bank of India has signed a MoU

Current Context: On January 5, 2026, the Delhi Government signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI) at the Delhi Secretariat.

• The MoU allows RBI to act as banker, debt manager, and financial agent for Delhi.
• It enables Delhi to raise funds through State Development Loans (SDLs) for major projects.
• The agreement also ensures automatic investment of surplus cash and access to liquidity facilities.
• Key focus areas include Yamuna rejuvenation, drinking water supply, and infrastructure development.
• The MoU strengthens fiscal discipline and financial governance for the Delhi Government. 
• It is seen as a historic financial reset, giving Delhi greater fiscal autonomy.

Question:

Q.1 On January 5, 2026, the Delhi Government signed an MoU with the Reserve Bank of India (RBI) for which of the following primary purposes?
a) To establish a new commercial bank for Delhi
b) To appoint RBI as its banker, debt manager, and financial agent
c) To get a direct loan from RBI for its annual budget
d) To merge Delhi's treasury with the central government's account

Answer: b) The Delhi Government signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI) at the Delhi Secretariat,to allow RBI to act as banker, debt manager, and financial agent for Delhi.