RBI governor urges states to borrow prudently and improve spending
In short
RBI Governor Sanjay Malhotra asked states to spend better, borrow more carefully, and manage cash more tightly.
He also said digital platforms should be used more for lending and direct benefit transfers. The report does not name any state or give any figures.
What the reporting says
RBI Governor Sanjay Malhotra urged states to improve spending quality, adopt prudent borrowing and strengthen cash management to support fiscal sustainability. He also called for wider use of digital platforms for lending and direct benefit transfers. The reporting does not name any specific state or provide numbers, so the immediate consequence is guidance rather than a policy change.
Why it matters
Sanjay Malhotra, the RBI Governor, pressed states to improve expenditure quality and use prudent borrowing and cash management practices. He also pushed wider use of digital platforms for lending and direct benefit transfers. The reporting presents this as policy advice aimed at fiscal sustainability, but it does not identify a new rule, timeline or quantified target.