The Finance Ministry has decided to set up a Public Debt Management Cell (PDMC) to better manage government's debt management functions, it was announced on Wednesday.
The cell which will function from the Reserve Bank of India (RBI) premises here will be upgraded to an independent and statutory debt management agency -- Public Debt Management Agency (PDMA) -- in the course of two years, the Finance Ministry said in a statement.
"This interim arrangement will allow separation of debt management functions from RBI to PDMA in a gradual and seamless manner, without causing market disruptions," it said.
The transition process from PDMC to PDMA would be implemented by a joint implementation committee (JIC), the statement added.
The PDMC will have 15 experts on debt management from budget division of the Finance Ministry, RBI and other government units, it said.
But it will only have advisory functions to avoid any conflict with the functioning of RBI.
Its functions will include planning borrowings of the government, management of central liabilities, monitoring cash balances of the government, advise the Finance Ministry on external borrowings, etc.
PDMC has also been asked to develop an Integrated Debt Database System as a centralised database for all liabilities of the government.
The cell would also advise on matters related to capital market operations and undertake research work, including those relating to new products development, it said.
--IANS
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