RBI may pilot digital currency in the first quarter of next year

  • The Reserve Bank of India may do a pilot of its central bank digital currency in the first quarter of the next fiscal year.
  • While many see CBDCs as a legalised replacement of cryptocurrencies, in reality, CBDCs could just be a digital replica of the physical cash in circulation.
  • According to a 2021 BIS survey, quoted in the RBI report, 86 percent of the central banks surveyed are actively researching the potential for CBDCs, 60 percent were experimenting with the technology and 14 per cent were deploying pilot projects.
[Via]

RBI Panel proposes a separate law to combat Illegal Digital Lending

  • The recommendations include subjecting the Digital Lending Apps to a verification process by a nodal agency to be set up in consultation with stakeholders and setting up a Self-Regulatory Organisation covering the participants in the digital lending ecosystem.
  • The RBI had constituted the working group on digital lending including lending through online platforms and mobile apps on January 13, 2021, under the chairmanship of Jayant Kumar Dash, Executive Director, RBI. The working group was set up in the backdrop of business conduct and customer protection concerns arising out of the spurt in digital lending activities.
  • The working group has recommended separate legislation to prevent illegal digital lending activities.
[Via]

Crypto market participant numbers are highly exaggerated : RBI Gov, ShaktiKanta Das

  • The numbers of Indians trading in cryptocurrencies look highly exaggerated, Reserve Bank of India governor Shaktikanta Das said on Wednesday while highlighting once again his concerns over the proliferation of virtual currencies.
  • The RBI governor also reiterated his concerns over the financial instability such investments could cause and stated that the government was actively considering its recommendations.
  • The government’s current plan includes creating a broad framework around crypto assets that would give them legal credence in India.
[Via]

RBI – India’s foreign exchange reserves is up by $7.78 billion and now stands at a record high of $568.49 billion

https://www.businesstoday.in/current/economy-politics/india-forex-reserves-jump-778-billion-to-record-high-of-56849-billion-rbi/story/421943.htmlRBI data says that week ending November 6th has shown a record jump in India’s forex reserves. RBI has said that this jump can be attributed to an increase in foreign current assets (FCAs).

RBI also said that gold reserves saw a $1.328 billion gain to end the week at $37.587 billion.

RBI allows NBFCs to tie up with Banks and co-lend to priority sector

The Reserve Bank of India (RBI) has permitted all registered non-banking finance companies (NBFCs) to enter into tie-ups with commercial banks and co-lend loans to the priority sector.

Under this newly revised guideline called ‘Co-Lending Model’, all NBFCs shall be required to retain a minimum of 20% share of the loan.

Priority sector refers to economically weaker sections of the economy.

[Via]

RBI Ban didn’t deter these crypto-exchanges #Jugaad #

Remember the April circular from The Reserve Bank of India (RBI) barring Indian banks from dealing with crypto-currency exchanges?
Not much of a dead-end for players who prefer back-end tunnels like conversion to crypto-to-crypto trading platforms or hopping overseas (like Singapore or Estonia). The loophole that these players are taking is the vague state of law on  peer-to-peer trading.

Zebpay and Kionex, for example, have crypto-to-crypto trading platforms.
While Zebpay has one pair of cryptos, Koionex has 23-odd pairs.
Unocoin, on the other hand, has launched UNODAX, a multi-crypto asset exchange.

BuyUcoin, established in 2016 as a crypto-currency exchange and wallet company, has announced the launch of its own token, BuyUcoin Token (BUC).

That should  make life and trading easy for players like UNODAX, Binex, Zebpay and Kionex etc. even if/until the challenge to the  the RBI circular in the Supreme Court concludes.