{"id":210386,"date":"2022-10-13T20:12:35","date_gmt":"2022-10-13T14:42:35","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=210386"},"modified":"2022-10-13T20:12:35","modified_gmt":"2022-10-13T14:42:35","slug":"disintermediation-an-overblown-bank-scare","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/disintermediation-an-overblown-bank-scare\/","title":{"rendered":"Disintermediation: An overblown bank scare"},"content":{"rendered":"\n<p><strong>Source<\/strong>: The post is based on an article\u00a0<strong>\u201c<\/strong><strong>Disintermediation: An overblown bank scare\u201d <\/strong>published in\u00a0<strong>Live Mint<\/strong>\u00a0on\u00a0<strong>13<sup>th<\/sup> October 2022<\/strong>.<\/p>\n<p><strong>Syllabus: GS 3 \u2013 <\/strong><strong>Economic Development <\/strong><\/p>\n<p><strong>News: <\/strong>The Reserve Bank of India (RBI) has recently outlined a plan for the proposal of e-rupee which is a digital currency.<\/p>\n<p>The proposal sets aside intermediaries like banks from the involvement in e-rupee. However, the Nobel Prize winner in economics this year, highlights the vital role of financial intermediation played by banks in an economy.<\/p>\n<p><strong>What will be the advantages of e-rupee?<\/strong><\/p>\n<p><strong>First,<\/strong> an e-rupee can easily attract savings as it will bear an RBI promise.<\/p>\n<p><strong>Second,<\/strong> money held in cash-like e-token form would be a very safe asset when compared to an account at a bank that requires transfers via UPI which looks \u2018digital\u2019 but is not risk-free. Further, offering interest on e-rupee can increase the deposits.<\/p>\n<p><strong>Third,<\/strong> lenders could borrow funds from RBI to on-lend and to sharpen their skills of pricing credit risk.<\/p>\n<p>Therefore, retail deposits play an important role in credit expansion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on an article\u00a0\u201cDisintermediation: An overblown bank scare\u201d published in\u00a0Live Mint\u00a0on\u00a013th October 2022. Syllabus: GS 3 \u2013 Economic Development News: The Reserve Bank of India (RBI) has recently outlined a plan for the proposal of e-rupee which is a digital currency. The proposal sets aside intermediaries like banks from the involvement&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/disintermediation-an-overblown-bank-scare\/\">Continue reading <span class=\"screen-reader-text\">Disintermediation: An overblown bank scare<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-210386","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704630180},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/210386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=210386"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/210386\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=210386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=210386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=210386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}