India, Jan. 6 -- The Delhi government on Monday signed a memorandum of understanding (MoU) with the Reserve Bank of India (RBI) that will allow it to raise funds through market borrowing at competitive rates to finance major infrastructure projects in the Capital, the government said.

Chief Minister Rekha Gupta, who also holds the finance portfolio, described the memorandum of understanding (MoU) as a "historic correction" in Delhi's financial governance.

"This MoU marks a historic correction in Delhi's financial governance. Despite being the nation's capital, Delhi was denied the benefits of structured RBI banking and market borrowings for years. Earlier governments never showed the intent to adopt globally accepted norms of fiscal pru...