The Finance Ministry has set up a Public Debt Management Cell(PDMC) with a view to streamline government borrowings and better cash management with the overall objective of deepening bond markets. The PDMC, to be housed at the RBI’s Delhi office, is an interim arrangement and will be upgraded to a statutory Public Debt Management Agency (PDMA) in “about two years”.
In his February 2015 Budget speech, Finance Minister Arun Jaitly had proposed to set up a PDMA to deepen Indian Bond market. “I intend to begin this process this year by setting up a Public Debt Management Agency (PDMA) which will bring both India’s external borrowings and domestic debt under one roof,” he had said.
The circular further said that Public Debt Management Cell will have only advisory functions to avoid any conflict with the statutory functions of RBI. The Joint Secretary (Budget), Department of Economic Affairs would be the overall in-charge of the PDMC.