Economy
The
government has no plan to recognise Bitcoin as a currency in the country,
Finance Minister Nirmala Sitharaman informed the Lok Sabha on Monday.
·
RBI Act 1934: The Reserve Bank of India
was established on April 1, 1935 in accordance with the provisions of the
Reserve Bank of India Act, 1934.
·
The office of the reserve bank was at
first established in Kolkata however was permanently moved to Mumbai in 1937.
·
The headquarters is wherever the
Governor sits and wherever policies are formulated. though originally in
private closely-held, since nationalization in 1949, the reserve bank is fully
owned by the govt. of India.
Main Functions:
1. Monetary Authority: It implements and
monitors the monetary policy and ensures price stability while keeping in mind
the objective of growth. An amendment to RBI Act, 1934, was made in May 2016,
providing the statutory basis for the implementation of the flexible inflation
targeting framework. Section 45ZB of the amended RBI Act, 1934, also provides
for an empowered sixmember Monetary Policy Committee (MPC) to be constituted by
the Central Government by notification in the Official Gazette
2. Manager of foreign exchange: Manages
the Foreign Exchange reserves of India. It facilitates external trade and
payment and promotes orderly development and maintenance of exchange market in
India. It conjointly maintains external price of rupee.
3. Issuer of Currency: Issues and
exchanges or destroys currency and coins not fit for circulation.
Objective: to provide the public adequate
quantity of provides of currency notes and coins and in good quality.
·
Legal Tender is a coin or a banknote
that is legally tenderable for discharge of debt or obligation.
·
The
coins issued by Government of India under Section six of The Coinage Act, 2011,
shall be legal tender in payment or on account providing a coin has not been
damaged and has not lost weight therefore as to be less than such weight as is
also prescribed in its case.
·
Bank notes in India:
As per Section twenty six of reserve bank of India Act, 1934, the Bank is
liable to pay the worth of banknote.
·
This is payable on demand by RBI, being
the issuer. Banknotes in India are currently being issued in the denomination
of ₹10, ₹20, ₹50, ₹100 ₹200, ₹500, and ₹2000.
·
These
notes are known as banknotes as theyre issued by the reserve bank of India.
·
The
printing of notes within the denominations of ₹2 and ₹5 has been discontinued
and these denominations are coinised because the value of printing and service
these banknotes wasnt commensurate with their life
·
However, such banknotes issued earlier
can still be found in circulation and these banknotes still be tender.
·
₹1 notes
are issued by the govt. of India from time to time and such notes as well as
those issued within the past also still be legal tender for transactions.
·
Digital Currency:
its a payment technique that exists only in electronic type and isnt
tangible.
·
It can be transferred between entities
or users with the help of technology like computers, smartphones and the
internet.
·
Although it is similar to physical
currencies, digital money allows borderless transfer of ownership as well as
instantaneous transactions. D
·
Digital currency is also known as
digital money and cybercash.
·
E.g. Cryptocurrency The reserve bank of
India (RBI) is working on a phased implementation strategy for its own digital
currency and is within the method of launching it in wholesale and retail
segments within the near future.
·
A high-level inter-ministerial committee
found out by the Finance Ministry had suggested central bank Digital Currency
(CBDC) with changes within the legal framework as well as the RBI Act, that
presently empowers the RBI to manage issuance of bank notes.
Comments