The conference brought together finance secretaries from 27 states and three Union Territories to review state borrowings, cash management and fiscal sustainability. The RBI Governor also urged states to adopt ULI and use programmable CBDC for direct benefit transfers.
BKK Bureau, New Delhi | 27 October 2026 | 10:02 PM IST
The Reserve Bank of India held the 36th Conference of State Finance Secretaries in Mumbai on October 27, with the meeting focused on the role of expenditure quality, cash management and debt management in strengthening the fiscal sustainability of states.
Finance secretaries from 27 states and three Union Territories attended the conference, along with senior officials from the Ministry of Finance, the Government of India, the Controller General of Accounts and the Comptroller and Auditor General of India. The Governor of the Reserve Bank of India inaugurated the event.
The conference theme was “Role of Quality of Expenditure, Effective Cash and Prudent Debt Management in Enhancing States’ Fiscal Sustainability”. In his address, the RBI Governor stressed that states need to maintain the quality of public spending to support their long-term fiscal health.
The Governor also highlighted the importance of disciplined borrowing and efficient cash management by state governments. He called on states to follow prudent borrowing strategies and to improve the way they manage their available funds and financing requirements.
Digital financial infrastructure and banking coordination were also part of the guidance issued at the meeting. The Governor urged states to join the Unified Lending Interface, or ULI, and to use Programmable Central Bank Digital Currency for direct benefit transfers. He further advised state governments to make effective use of the State Level Bankers’ Committee forum.
The RBI released a booklet titled “Compendium on Cash and Debt Management for State Governments” during the conference. According to the central bank, the publication brings together relevant concepts, operational procedures and practices related to cash and debt management in a concise format for state governments.
Participants reviewed several issues linked to state finances, including market borrowings by states, short-term financial accommodation provided to states by the RBI and the adoption of a Benchmark Issuance Strategy. The conference therefore covered both the broader principles of fiscal management and specific mechanisms used by states to raise and manage funds.
The meeting placed expenditure quality alongside borrowing and liquidity management as important components of state-level fiscal administration. It also provided a forum involving state finance departments, the central government, accounting authorities, the national audit institution and the RBI.
Key points from the conference
- Finance secretaries from 27 states and three Union Territories participated.
- The RBI reviewed state market borrowings and short-term financial accommodation.
- States were urged to use prudent borrowing and efficient cash management practices.
- The RBI encouraged states to onboard onto ULI and use programmable CBDC for direct benefit transfers.
- A compendium on cash and debt management for state governments was released.
Why it matters
State governments’ spending, borrowing and cash-management practices affect how they plan public finances. The conference brought these issues together with digital delivery mechanisms and banking coordination, while the new RBI booklet provides a consolidated reference on cash and debt management.
Source: Reserve Bank of India
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