News: RBI governor has raised his concern over the cryptocurrency investment in India. Contents1 How the RBI has responded to the crypto business so far?2 How many Indians invest in cryptos and whether the amount is taxed?3 What are the concerns associated with cryptocurrency?4 Source: This post is based on the article “What is RBI’s stand… Continue reading What is RBI’s stand on the use of cryptocurrency
Tag: money and banking
An RBI public interface that can recast banking
News: RBI has opened a retail window for bonds. Along with this, the launch of its digital rupee next could enable RBI to take over the bank depository function. Recently, RBI launched the Retail Direct scheme. Under this scheme, people can invest directly in government bonds. As these are virtually risk-free, people would be attracted… Continue reading An RBI public interface that can recast banking
PM launches 2 RBI schemes. All about the central bank initiatives
What is the News? Prime Minister has launched two innovative customer-centric initiatives of RBI, viz. Retail Direct Scheme and the Reserve Bank – Integrated Ombudsman Scheme. What is a Retail Direct Scheme? The Retail Direct Scheme allows retail investors to invest in government securities (G-Sec) by opening a gilt security account with the RBI. The… Continue reading PM launches 2 RBI schemes. All about the central bank initiatives
Managing Cryptocurrencies
News: Since March 2020, when the Supreme Court ruled it was legal to trade Cryptocurrencies, over Rs 50 crore in Crypto-assets is traded every day by resident Indians. On the other hand, RBI has often expressed its serious concerns regarding the dangers these instruments pose to macroeconomic and financial stability of the country. Hence, governments… Continue reading Managing Cryptocurrencies
PM to launch two innovative customer centric initiatives of RBI
What is the News? The Prime Minister has launched two innovative customer centric initiatives of the Reserve Bank of India. Which two customer centric initiatives of the RBI have been launched? RBI Retail Direct Scheme Aim: To enhance access to the government securities market for retail investors. Under the scheme, retail investors will be able… Continue reading PM to launch two innovative customer centric initiatives of RBI
The case of demonetisation in India
News: Popular narratives play a much bigger role in economic policymaking than economists and policymakers acknowledge. For instance, the Weimar hyperinflation of 1921-24 is deeply embedded in the German consciousness. Even now, nearly 100 years after the event, German society trusts financial stability and distrusts public debt. Fiscal conservatism remains the dominant narrative and has… Continue reading The case of demonetisation in India
Will a bad bank fix India’s broken banking system?
Synopsis: Last month, the Union government set up the National Asset Reconstruction Company Limited (NARCL) under the Companies Act. Two experts, Ajit Ranade and C.P. Chandrasekhar, discuss the bad bank proposal. We list out the key points. Must Read: NARCL: Need and Challenges – Explained, pointwise What is the need to bail out banks? There… Continue reading Will a bad bank fix India’s broken banking system?
Srei’s fall and the sorrysaga of shadow lenders
What is the news? After the 2018 collapse of IL&FS and 2019 collapse of DHFL, the Reserve Bank of India (RBI) has added the Kolkata-based Srei Group to the country’s list of failed non-bank lenders. The regulator superseded the boards of two non-banking financial companies (NBFCs), Srei Infrastructure Finance Ltd and Srei Equipment Finance Ltd.… Continue reading Srei’s fall and the sorrysaga of shadow lenders
Recurring pain: On RBI’s decision on auto-debit transactions
Synopsis: RBI must re-examine its auto-debit restrictions Contents1 Introduction2 What are the issues and challenges associated with the RBI’s move?3 What are the other alternatives available?4 What is the way forward? Introduction Recently, the Reserve Bank of India’s (RBI’s) new rules controlling recurring payments on credit or debit cards came into force. The new rules… Continue reading Recurring pain: On RBI’s decision on auto-debit transactions
How loopholes in Aadhaar-enabled payments are putting poor people at risk of being swindled
Synopsis: Given the need for financial inclusion, resolving the issue in the AePS model is vital. Contents1 Introduction2 What is the Aadhaar enabled Payment System (AePS)?3 What are the issues associated with AePS?4 How these issues can be eliminated from AePS? Introduction The government of India launched Aadhaar enabled Payment System which is coupled with… Continue reading How loopholes in Aadhaar-enabled payments are putting poor people at risk of being swindled
