RBI Governor Malhotra urges cautious borrowing, nudges digital tool adoption
Reserve Bank of India Governor Sanjay Malhotra has a message for state governments: Think carefully before borrowing money.
Speaking at the big State Finance Secretaries's meeting, he stressed that smart spending and responsible borrowing are key for keeping state finances healthy in the long run.
Malhotra also nudged states to use digital tools like the Unified Lending Interface and programmable digital currency for smoother direct benefit transfers.
Guidebook on states' cash and debt
The event wasn't just about advice: It also saw the launch of a new guidebook on cash and debt management for states.
Officials discussed ways to handle loans better, with concern about rising bad loans possibly putting pressure on private banks in FY27 (2026-27).
The overall vibe: plan ahead, use tech smartly, and keep an eye on financial risks.