States urged to tighten borrowing and use programmable digital cash
The Reserve Bank of India (RBI) Governor urged states to improve spending quality, borrowing and cash management. He also called for adoption of the Unified Lending Interface and programmable central bank digital currency for benefit transfers.
Spending quality meets digital delivery
The Governor linked expenditure quality to states' long-term fiscal health and urged prudent borrowing strategies and efficient cash management.
He asked states to join the Unified Lending Interface (ULI), use Programmable Central Bank Digital Currency (P-CBDC) for Direct Benefit Transfers (DBT) and make effective use of the State Level Bankers' Committee (SLBC).
He inaugurated the 36th Conference of State Finance Secretaries at RBI in Mumbai on October 27, 2026.
Finance Secretaries from 27 states and three Union Territories attended.
Senior officials represented the Ministry of Finance, Government of India, the Controller General of Accounts and the Comptroller and Auditor General of India.
Borrowing practices under review
The conference focused on expenditure quality, effective cash management and prudent debt management as supports for states' fiscal sustainability.
Participants reviewed states' market borrowings, short-term financial accommodation from RBI and adoption of a Benchmark Issuance Strategy.
The Governor released the Compendium on Cash and Debt Management for State Governments, covering concepts, operational processes and good practices in an accessible format.
Chief General Manager Brij Raj signed the press release.
Guidance rather than new rules
The release reports recommendations to states, not binding changes to borrowing or spending rules.
It places digital benefit transfers alongside cash and debt management in the fiscal discussion.
It gives no implementation deadlines for the recommended adoption.