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
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 before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Related Content
- 1 Bharat Cleantech Manufacturing Platform
- 2 Five New Industrial Clusters from India join WEF Initiative
- 3 Logistics Ease Across Different States (LEADS) 2024 Report
- 4 Team Initiative:Boosting Digital Commerce for MSMEs
- 5 Diamond Imprest Authorization Scheme
- 6 National Critical Minerals Mission
- 7 Mutual Credit Guarantee Scheme for MSMEs
- 8 National Manufacturing Mission
- 9 Financialisation of the Economy
- 10 Undercapitalization of Indian Debt Market

- 1 Blue Economy: Unlocking Sea of Opportunities
- 2 Extension of Animal Husbandry Infrastructure Development Fund
- 3 RBI Imposes Restriction on Payment Bank
- 4 Amendments to Input Service Distributors
- 5 Tax Buoyancy
- 6 Dynamic Asset Allocation
- 7 Constitutional Validity of Anti-profiteering Provisions in GST
- 8 SEBI Extends FPI Disclosure Norms Deadline
- 9 RBI Revises Norms for Politically-Exposed Persons
- 10 Momentum Investing
- 11 Cabinet Approves Continuation of RoSCTL Scheme for Export of Apparel
- 12 India’s first National Highway Steel Slag Road Technology Opened