Big Change! Cities Can Now Raise Money Without Government Help

Big news for urban development in India! Finance Ministry has made municipal bonds eligible for repo and reverse repo transactions. 🏙️

What does this mean?
Now banks, mutual funds, insurance companies and corporates can invest in municipal bonds AND use them as collateral for short-term loans. This opens up massive liquidity! 💰

Why it matters:
✅ Cities like Delhi, Mumbai, Chandigarh can raise funds independently
✅ Faster funding for metro, roads, flyovers, smart city projects
✅ Increased investor base = higher demand for municipal bonds
✅ Urban Local Bodies get financial independence

Key Facts:
📊 ₹3,300 crore already raised through municipal bonds
🚀 10+ new bonds expected in FY25-FY26
⚠️ Important: Check city's financial health before investing - default risk exists

Perfect topic for UPSC/PCS aspirants covering:

Public Finance
Urban Governance
Financial Markets
Current Affairs
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