Addressing the 36th Conference of State Finance Secretaries, the Governor also pressed States to join the Unified Lending Interface and use programmable CBDC for benefit transfers.

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• The RBI Governor addressed the 36th Conference of State Finance Secretaries and urged States to adopt prudent borrowing and cash-management strategies.
• States were asked to improve the quality of their expenditure rather than only the volume of spending.
• The Governor encouraged States to join the Unified Lending Interface, the RBI platform for frictionless credit using consented data.
• States were also urged to use programmable CBDC for direct benefit transfers.
• Programmable CBDC is a digital rupee that can be restricted to specific uses.
• Article 293 allows States to borrow only within India, and a State indebted to the Centre needs the Centre's consent to borrow further.
• States raise market borrowings through State Development Loans, with the RBI acting as their debt manager and banker by agreement.
• Ways and Means Advances are short-term RBI credit that helps States cover temporary cash mismatches.
• Every State has a Fiscal Responsibility Act, and Finance Commissions generally recommend deficit ceilings of around 3 per cent of GSDP.