The amount of cash or banknotes in the economy depends on the need to meet the demand for banknotes due to GDP growth, inflation, the replacement of soiled banknotes and the growth of other forms of payment than species.
She pointed out that the government’s mission is to move towards a less cash economy to reduce the generation and circulation of black money and promote the digital economy.
The government and RBI have taken steps to promote a less cash economy and encourage digital payment, she said.
Regarding the “rationalization of the Merchant Discount Rate (MDR) for debit card transactions”, she said that the RBI has advised banks to ensure that the merchants they onboard do not pass on MDR charges on customers while accepting debit card payments.
The Ministry of Revenue has advised banks to immediately refund fees collected, if any, from January 1, 2020, on transactions conducted using electronic modes prescribed under Section 269SU of the Act and not to impose fees on future transactions through prescribed means. fashions, the minister noted.
Minister of State for Finance, Pankaj Chaudhary, in a response to the House, said crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. “Therefore, any legislation on the subject can only be effective with meaningful international collaboration on risk-benefit assessment and the evolution of common taxonomy and standards,” he said.
Currently, he said, policy relating to crypto assets and the related ecosystem falls under the Ministry of Finance.
Responding to another question, Chaudhary said that there are four exchanges having a commodity derivatives segment, namely Multi Commodity Exchange of India Limited (MCX), National Commodity & Derivatives Exchange Limited (NCDEX), Bombay Stock Exchange Limited (BSE) and National Stock Exchange. of India Limited (NSE) at present.
Consumer food price inflation (CFPI) fell from 7.01% in October 2022 to 4.67% in November 2022, he said, adding that average retail prices of pulses across the India have shown no strong and steady increase in recent months. .
In another response, Chaudhary said the total inflow of foreign direct investment (FDI) into the country increased from $81,973 million in FY21 to $84,835 million in FY21. FY22, reflecting increased foreign investment opportunities in the country.
To promote FDI, he said, the government has put in place an investor-friendly policy, in which most sectors, except for some strategically important sectors, are 100% open to FDI in the frame of the automatic lane.
The government regularly reviews FDI policy to ensure that India remains an attractive and investor-friendly destination.
The government is watching the CAD carefully and at the start of the current fiscal year it raised gold tariffs from 10.75% to 15% to limit gold imports, which is expected to reduce the CAD, did he declare.
In addition, the RBI has also announced a series of measures aimed at increasing foreign exchange inflows to finance the current account deficit, he added.
