RBI’s Guidelines on State ‘Guarantees’ on Borrowing
On 16th January, 2024, a working group constituted by the Reserve Bank of India (RBI) made certain recommendations to address issues relating to guarantees extended by State governments.
- The working group, constituted in July 2022, comprised of members from the Ministry of Finance, Comptroller and Auditor General of India, and some State governments.
Recommendations
Expanded Definition of Guarantee
- The Working Group proposes a broader definition of ‘guarantee’ to encompass all instruments which create an obligation on the guarantor to pay.
- There must not be any distinction between conditional or unconditional, financial or performance guarantees while evaluating fiscal risk.
Government ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Already a Member? Login here
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Economy Watch
- 1 Paste Fill Technology for Coal Mining
- 2 SEBI's Proposed Ease of Doing Business Measures for REITs and INVITs
- 3 Common Contract Note
- 4 Standing Deposit Facility
- 5 Green Municipal Bonds
- 6 Annual Survey of Services Sector Enterprises
- 7 Vizhinjam Seaport: India's First Deep-Water Container Transshipment Port
- 8 Multi Modal Logistics Park
- 9 Guidelines for Setting up Bio-Input Resource Centres
- 10 M-CADWM Scheme Approved
