In recent years, a new form of digital money has been gaining serious attention across the globe — Central Bank Digital Currencies, or CBDCs. These are government-backed digital versions of a country’s official currency. Unlike traditional cryptocurrencies, CBDCs are controlled and issued by central banks, making them a hybrid of traditional money and digital innovation.The rise of CBDCs is not just a technological development. It marks a potential turning point in how money functions in the modern economy, especially in relation to the crypto market. As more countries test or...
Banks, non-bank lenders and financial institutions may get to invest up to 10% in the corpus of alternate investment fund (AIF) schemes, in a relief for the sector that faced a central bank clampdown in December, 2023. There will be no restriction on regulated entities (REs) such as banks for investing up to 5% in the AIF scheme's corpus, Reserve Bank of India (RBI) proposed on Monday. However, if the AIF scheme invests in a company that has borrowed from the bank, then the RE must make full provision to...