The Delhi government on Monday (January 5, 2026) signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI), enabling the government, for the first time, to raise funds from the open market for the first time, the Chief Minister’s Office (CMO) said. Funds will be raised at an interest rate of nearly 7%, it added.
The statement quoted Chief Minister Rekha Gupta as saying that the funds will be utilised “exclusively for capital expenditure” on works such as Yamuna rejuvenation, drainage infrastructure, drinking water supply, health infrastructure, public transport and urban mobility, and other essential urban infrastructure.
Historical reform: CM
“This MoU is not merely an administrative arrangement. It is a historic financial reform that Delhi will benefit from for decades. With this step, Delhi embarks on a new journey of responsible governance, strong institutions, and sustainable growth, fully aligned with the vision of a developed India,” it added.
The CM termed the reform an outcome of sustained engagement with the Centre and a meeting with Union Finance Minister Nirmala Sitharaman last month, during which key issues concerning fiscal autonomy and the modernisation of Delhi’s financial architecture were discussed.
