RBI Holds 36th State Finance Secretaries Conference

Document title: Reserve Bank holds 36th Conference of State Finance Secretaries

Issuing authority: Reserve Bank of India

Reference number: Press Release: 2026-2027/1395

Date: October 27, 2026

Macro Outlook

The Governor emphasized that maintaining the quality of expenditure and adopting prudent borrowing strategies are essential for the long‑term fiscal health and sustainability of State governments. The conference theme, “Role of Quality of Expenditure, Effective Cash and Prudent Debt Management in Enhancing States' Fiscal Sustainability,” underscored the importance of disciplined fiscal management across the 27 participating states and three Union Territories.

Banking and Credit

Discussions reviewed market borrowings by the States, short‑term financial accommodation provided by the RBI, and the adoption of the Benchmark Issuance Strategy by several States. The Governor urged the States to improve cash management practices and to make effective use of the State Level Bankers' Committee (SLBC) forum for coordinated banking support.

Regulatory and Policy Measures

The Governor called on States to onboard onto the Unified Lending Interface (ULI) and to utilise the Programmable Central Bank Digital Currency (P‑CBDC) for Direct Benefit Transfers (DBT), aiming to enhance efficiency and transparency in public payments. A booklet titled “Compendium on Cash and Debt Management for State Governments” was released, summarising relevant concepts, operational processes and good cash and debt management practices in a concise format.

The conference brought together Finance Secretaries, senior officials from the Ministry of Finance, the Controller General of Accounts and the Comptroller and Auditor General of India, fostering a coordinated approach to fiscal sustainability and financial management at the State level.

Overall, the RBI’s engagement highlighted a strategic push towards disciplined fiscal practices, modern digital payment infrastructure, and strengthened coordination between State finance authorities and the central banking system.