Cryptocurrency and it’s regulation in India – Recent SC VerdictPREMIUM 

Reading Time: 9 mins The Supreme Court, on March 2020, had struck down RBI’s controversial circular that prohibited any central bank regulated entities from providing banking services to anyone dealing with virtual or cryptocurrencies. This ruling allows banks to handle cryptocurrency transactions. Though this may threaten the country’s financial system, it does provide an opportunity for the government and the central bank to form regulatory frameworks and laws that, while allowing the use of cryptocurrencies, can ensure preventive measures that can counter private cryptocurrencies.

Banking Regulation (Amendment) Bill, 2020 – Need, Features, Limitations

Reading Time: 5 mins Banking Regulation (Amendment) Bill, 2020 was introduced in Lok Sabha on 3rd March 2020 to improve cooperative banks’ management and regulation so as to protect the interests of the depositors. It also proposed to strengthen the cooperative banks by increasing professionalism, enabling access to capital, improving governance and ensuring sound banking through the RBI. This bill seeks to ensure that PMC-like frauds are not repeated in the future.

Monetary Policy in India – Objectives, Framework, Committee, Instruments

Reading Time: 8 mins The Reserve Bank of India on 6th February 2020, had released the 6th Bi-Monthly Monetary Policy Statement 2020. After looking into the current macroeconomic situation, RBI’s Monetary Policy Committee had decided not to change the policy repo rate, which is at 5.15%, in accordance with its plan to maintain the accommodative stance until the economic growth is revived, and the inflation rate is within the target. Apart from this, several other steps were taken by the MPC to boost economic growth and demand. The accommodative stance taken by the RBI is a step in the right direction as it can support economic growth and reduce inflation exponentially.

Disinvestment of Public Sector Units (PSUs) in India – Pros and ConsPREMIUM 

Reading Time: 6 mins The government has set a disinvestment target for 2020-2021 to Rs.2.10 lakh crore, having failed to achieve the current fiscal year’s target of Rs.1.05 lakh crore. It hopes to achieve the unmet target of this fiscal year in the next fiscal year. A large part is likely to come from the sale of stakes in Life Insurance Corporation and IDBI bank. However, the strategy of how this target is going to be achieved is absent. Nevertheless, selling off stakes from high return public enterprises like LIC can ensure the achievement of targets set by the government. Achieving this alone is not enough. The government must use these earnings not to pay off its loans or achieve its fiscal deficit target but to reinvest in aspects that ensure improvement in economic growth and sustainable returns.

Nationalisation of Banks in India: What, Why, How, Pros & Cons

Reading Time: 7 mins July 19 of this year marks the 50th anniversary of bank nationalisation. Nationalisation of banks is arguably the biggest structural reform introduced in the financial sector during the post-independence era of Indian history. The second volume of the official history of the Reserve Bank of India describes banks nationalisation as the single-most-important economic policy decision …

Development Banks – Why India Need it?PREMIUM 

Reading Time: 5 mins

The Finance Minister on August this year had announced a series of measures to boost the economy and the financial market sentiments of the country. Among them was the setting up of a development bank. This comes during the time when there is an increasing call for sustainable development of the economy and the promotion of eco-friendly technologies. This announcement was in response to the economic slowdown and discouraging capital market sentiments. The idea for the establishment of a sound development bank is encouraging as it helps in providing investments on long-term projects that may have little or no profitable returns but are essential for the sustainable development of the country. This move allows for risky investments, the ones that are essential for addressing the environmental concerns, technological growth, and rural economic development.