What is Cryptocurrency A new word emerged in our lives two months after the beginning of the recession of 2008 and gradually transformed from a vague expression ("virtual coin") to the vocabulary used to characterize the new economy. On June 9, 2009 the first bitcoin was released by an anonymous person called Satoshi Nakamoto. For different reasons like the sub-prime crisis, Nakamoto, claimed he is a Japanese man in his 30's, said he gave the open protocol in 2007. Today the new coin is called a "Digital Asset" and decentralization is the principal idea behind it: there's no main institution responsible for regulating it. The most familiar and traded form of Blockchain's technology, Bitcoin, who has crossed the $15,000 lines way back and has shows an image of exponential increase in the past few months. The great advantage of blockchain technology is that it doesn't have to keep records for a large central computer or big managing company. With this ...
History
The Reserve Bank of India (RBI) is the central bank of India and manages the Indian Rupee’s supply. It is also the regulator of Indian Banking sector and plays a major role in functioning of Government of India.
Currently it functions under Monetary Policy Committee which was founded in 2016. Under this committee it monitors the monetary policies of India.
Headquarters of RBI was setup in Calcutta (Kolkata) but was moved to Mumbai in 1937. RBI has also acted as central bank for Burma (Myanmar) until 1947 and for Pakistan until 1948, until their State Bank of Pakistan came into existence.
RBI since 1949 after its nationalization is fully owned by Government of India. RBI is responsible for printing of currency Rupee under Government Supervision.
Role
"To regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth." -Preamble of RBI
Basic function of RBI is to issue currency, maintain reserves of foreign currency, regulate the banking structure of India, and control the credit system at the best interest of India.
Framework
Current Governor of Reserve Bank of India is Shaktikanta Das and deputy governors are B.P. Kanungo, Mahesh Kumar Jain, and Michael Patra.
Reserve Bank of India is sub-divided into 4 regions mainly knowns as North, South, East and West and with representative present in New Delhi, Chennai, Kolkata and Mumbai respectively.
RBI as a central bank holds many regulatory policies such as payment and settlement, debt management for government, maintaining foreign exchange, and banking system.
Demonetization
On 8 November 2016, RBI and Government of India carried out demonetization were ₹500 and ₹1000 notes were declared as illegal tender. New ₹500 and ₹2000 notes were given as exchange for old ₹500 and ₹1000 notes, at banks, RBI offices, etc.
Government of India clarified that this action was conducted to restrict funding of Maoist and terrorist groups which was carried out by hawala networks. Country saw a massive spike in digital payments during demonetization as cash was not available, also 3 Lakh Crore of Black Money was cancelled out from system. It also restricted the circulation of fake currency.
Comments
Post a Comment