CURRENT AFFAIRS UPSC

  India is aiming to make the rupee a global currency . Internationalization is a process that involves increasing the use of the rupee in cross-border transactions. It involves promoting the rupee for import and export trade and then other current account transactions, followed by its use in capital account transactions . These are all transactions between residents in India and non-residents . The internationalisation of the currency, which is closely interlinked with the nation’s economic progress, requires further opening up of the currency settlement and a strong swap and forex market. More importantly, it will require full convertibility of the currency on the capital account and cross-border transfer of funds without any restrictions. India has allowed only full convertibility on the current account as of now. Currently, the US dollar, the Euro, the Japanese yen and the pound sterling are the leading reserve currencies in the world . China’s efforts to make its currency re...

  The Reserve Bank of India (RBI) is working on regulations for financial technology companies (fintechs) and is in consultation with the industry for the same , “There are no fintech regulations right now . Sankar added that while various fintechs are focusing on innovation, there is a need for greater emphasis on regulation. That is, there is a need to find a balance between fostering innovation and ensuring adherence to norms . 

  When it comes to India’s economic policy , possibly the most important priority of the current government has been to incentivise investments by Indian corporates , especially those belonging to the private sector. Many of the government’s key policy goals — such as, generating more jobs and creating a more formal economy — are linked to private corporations making new investments. This push towards a greater role of the private sector enterprises has been repeated several times by the government ministers and is an essential counterpart of the ‘Minimum Government, Maximum Governance’ promise. Why and how India Inc. has been incentivised? Simply put, the idea is to let the private sector take the lead in economic activity — exactly opposite of the model that governments followed during the centralised planning phase before 1991 . To be sure, the idea is not new. The economic reforms of 1991 essentially meant that government and government-owned entities (read Public Sector Under...