RBI Governor Urges States to Improve Spending Quality and Borrow Prudently
What Happened
RBI Governor Sanjay Malhotra urged states to improve spending quality, borrow prudently and manage cash efficiently at the 36th Conference of State Finance Secretaries in Mumbai on October 27, 2026. He also encouraged adoption of the Unified Lending Interface and programmable central bank digital currency for direct benefit transfers, according to reporting citing the RBI.
Key Takeaways
Malhotra linked better spending, borrowing and cash management to states’ long-term fiscal health. His remarks emphasised financial management practices and digital tools, rather than announcing new borrowing limits or spending restrictions.