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RBI cautions states on fiscal discipline as bond yields rise
Mint Kolkata
|October 24, 2025
Flagging a sharp rise in state bond yields, the Reserve Bank of India (RBI) has cautioned states against pre-election populist spending and fiscal slippage, especially in Bihar and Maharashtra.
At a meeting with state finance secretaries last month, RBI governor Sanjay Malhotra urged states to keep borrowing in check and adhere to fiscal deficit targets under the Fiscal Responsibility and Budget Management (FRBM) framework, four people aware of the matter said.
This story is from the October 24, 2025 edition of Mint Kolkata.
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