BANKING AFFAIRS

Detailed explanation-1: -As the debt manager of the central and state governments, the mandate of the Reserve Bank is to manage the government market borrowing programme in a non-disruptive manner while keeping in mind the objective of cost optimisation, risk mitigation and market development.

Detailed explanation-2: -PDMC has the following advisory functions to the Government.” Manage Central Government’s liabilities including NSSF, contingent liabilities. Monitor cash balances of the Government, improve cash forecasting and promote efficient cash management practices.

Detailed explanation-3: -The Reserve Bank of India (RBI) is responsible for managing India’s public debt, especially debt denominated in the domestic currency. The management of the central government’s debt is conducted by RBI under statutory provisions that oblige the central government to delegate its debt management to the RBI.

Detailed explanation-4: -(iii) Under Section 17(11) of the RBI Act, the RBI is empowered to act as an agent of, inter alia, the Central and State Governments in managing public debt and issuing and managing bonds and debentures.