- RBI acts as the debt manager for Central and State Governments.
- It manages public debt and issues new loans on their behalf.
- RBI’s debt management policy aims to minimize borrowing cost.
- It also aims to reduce risk and smoothen debt maturity structure.
- RBI provides “Ways and Means Advances” (WMA) to meet temporary cash mismatches.
- It arranges investments of surplus cash balances for governments.