To address the rising threat of cyber fraud, the Reserve Bank of India (RBI) is planning to establish a Digital India Trust Agency (DIGITA).
About Digital India Trust Agency (DIGITA)
DIGITA aims to tackle the proliferation of illegal lending apps by verifying and maintaining a register of authenticated digital lending platforms.
Role of DIGITA:
Public Register: It will maintain a public register of verified apps, providing transparency and aiding law enforcement agencies in identifying unauthorised platforms.
Verification Hub: It will serve as a central agency for vetting digital lending apps, ensuring their authenticity and compliance with regulations.
Regulatory Implications
Apps lacking the ‘verified’ signature from DIGITA will be deemed unauthorized, enhancing law enforcement efforts against financial crimes in the digital domain.
Verification processes will promote transparency and accountability within the digital lending sector, curbing fraudulent activities.
Progress made so far
The RBI has shared a list of 442 digital lending apps with the IT Ministry for whitelisting with Google.
Google has removed over 2,200 digital lending apps from its PlayStore, aligning with RBI and DFS directives to only allow apps from regulated entities or their partners.
PYQ:
2016:
Regarding âDigiLockerâ, sometimes seen in the news, which of the following statements is/are correct?
1. It is a digital locker system offered by the Government under Digital India Programme.
2. It allows you to access your e-documents irrespective of your physical location.
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Practice MCQ:
Consider the following statements about RBI led Digital India Trust Agency (DIGITA):
1.   It aims to tackle the proliferation of illegal lending apps.
2.   Apps lacking the ‘verified’ signature from DIGITA will be deemed unauthorized.
Mains Paper 1: Salient Features Of World’S Physical Geography
Why in the news?
Taiwan was struck by its most powerful earthquake in at least 25 years.
Its susceptibility to earthquakes is attributed to its location along the Pacific “Ring of Fire” where a majority of the world’s seismic activity occurs.
Taiwan is primarily influenced by the collision of the Philippine Sea Plate and the Eurasian Plate.
What is the Pacific âRing of Fireâ?
The Pacific âRing of Fireâ or Pacific Rim, or the Circum-Pacific Belt, is an area along the Pacific Ocean that is characterized by active volcanoes and frequent earthquakes.
Volcanic arcs and oceanic trenches partly encircling the Pacific Basin form the so-called Ring of Fire.
It is home to about 75 per cent of the worldâs volcanoes â more than 450 volcanoes.
Also, about 90 per cent of the worldâs earthquakes occur here.
Its spread
Its length is over 40,000 kilometres and traces from New Zealand clockwise in an almost circular arc covering Tonga, Kermadec Islands, Indonesia.
It is moving up to the Philippines, Japan, and stretching eastward to the Aleutian Islands, then southward along the western coast of North America and South America.
Seismic activity of the region
The area is along several tectonic plates including the Pacific plate, Philippine Plate, Juan de Fuca plate, Cocos plate, Nazca plate, and North American plate.
The movement of these plates or tectonic activity makes the area witness abundant earthquakes and tsunamis every year.
Along much of the Ring, tectonic plates move towards each other creating subduction zones.
One plate gets pushed down or is subducted by the other plate.
This is a very slow process â a movement of just one or two inches per year.
As this subduction happens, rocks melt, become magma and move to Earthâs surface and cause volcanic activity.
PYQ:
2020: Discuss the geophysical characteristics of Circum-Pacific Zone.
Mains Paper 3: GS3-18.Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment.
Why in the news?
With only an estimated 50 individuals remaining, predominantly in western India, the caracal (Caracal caracal schmitzi) is on the verge of extinction in the country.
Ranthambhore Tiger Reserve in Rajasthan and Kutch in Gujarat are the last strongholds for caracals in India, hosting around 28 and 20 individuals, respectively.
About Caracals
Caracals are small wild cats known for their long ears with tufts and a reddish-tan or sandy-brown fur. It is called Siya Gosh in India.
It is nocturnal animal typically preys upon small mammals, birds, and rodents.
They live naturally in India, especially in Northwestern India. They are also found in Africa, the Middle East, and Central Asia.
They are found in Aravalli hill range, semi-deserts, savannahs, scrublands, and dry forests.
Caracals used to live all over Central India and the Indo-Gangetic plains, but they haven’t been spotted in those areas for 40 years.
Conservation Status
Caracals are listed as ‘Least Concern‘ on the IUCN Red List globally.
It is listed as Near Threatened in India,
It falls in the Schedule-I of the Indian Wildlife (Protection) Act, 1972.
Protection Efforts
In 2021, the National Board for Wildlife (NBWL) and the Ministry of Environment, Forest and Climate Change (MOEFCC) announced a plan to recover and increase the population of 22 species in India, including caracals.
Areas like Kutch, Aravalli mountains, Malwa plateau, and Bundelkhand region have been identified as potential habitats, with the Ranthambore-Kuno Landscape being a key conservation site.
PYQ:
2017:
In India, if a species of tortoise is declared protected under Schedule I of the Wildlife (Protection) Act, 1972, what does it imply?
(a) It enjoys the same level of protection as the tiger.
(b) It no longer exists in the wild, a few individuals are under captive protection; and now it is impossible to prevent its extinction.
(c) It is endemic to a particular region of India.
(d) Both B and C stated above are correct in this context.
Mains Paper 3: GS3-18.Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment.
Why in the news?
The Forest Department and a temple authority at Ahobilam have imposed certain restrictionson visitors arriving at a shrine in Nagarjunasagar-Srisailam Tiger Reserve (NSTR).
About Nagarjunasagar-Srisailam Tiger Reserve
Details
Origin of Name
Named after Nagarjuna Sagar Dam and Srisailam Dam.
Location
Situated in the Nallamala hill range, part of the Eastern Ghats in Andhra Pradesh.
Area
Largest tiger reserve area in India, covering a total area of 3727 sq km.
Wildlife Sanctuaries
Constituted by the Rajiv Gandhi Wildlife Sanctuary and the Gundla Brahmeswaram Wildlife Sanctuary.
Vegetation
Features tropical, dry, moist, deciduous vegetation with diverse flora and fauna.
Topography
Consists of plateaus, ridges, gorges, and deep valleys.
River Krishna
Traverses through the reserve for approximately 270 kilometers.
Additional Information
Attained tiger reserve status in 1983.
Home to Bengal tigers, Indian leopards, and more.
Habitat contains several endemic species of plants.
Tropical dry deciduous forests with bamboo and grass undergrowth.
PYQ:
2020:
Among the following Tiger Reserves, which one has the largest area under âCritical Tiger Habitatâ?
(a) Corbett
(b) Ranthambore
(c) Nagarjunsagar-Srisailam
(d) Sunderbans
2015:
Consider the following pairs :
Place of Pilgrimage: Location
1.   Srisailam : Nallamala Hills
2.   Omkareshwar : Satmala Hills
3.   Pushkar : Mahadeo Hills
Which of the pairs given above is/are correctly matched?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Practice MCQ:
It is the largest tiger reserve in India, covering a total area of 3727 sq km. It is constituted by the Rajiv Gandhi Wildlife Sanctuary and the Gundla Brahmeswaram Wildlife Sanctuary and features tropical, dry, moist, deciduous vegetation with diverse flora and fauna.
Which protected area is implied by the above description?
Mains Paper 3: GS3-16.Achievements of Indians in Science & Technology
Why in the news?
The Centre for Cellular and Molecular Platforms (C-CAMP) in Bengaluru has unveiled OptiDrop platform designed to simplify and significantly reduce the cost of studying single cells.
About C-CAMP
C-CAMP Initiative was established in 2009 under the aegis of the Department of Biotechnology, Ministry of Science, Technology, and Earth Sciences.
It stands as India’s premier biosciences research and innovation hub.
What is OptiDrop?
OptiDrop presents a cost-effective alternative to traditional flow cytometry methods, making single-cell analysis more accessible to a broader range of researchers and institutions.
OptiDrop simplifies single-cell analysis by encapsulating individual cells within droplets, facilitating easier manipulation and analysis compared to traditional methods.
Key features such as affordability, live data visualization, compact design, and closed-system architecture enhance its suitability for diverse clinical applications.
Cytometry is the measurement of number and characteristics of cells. Variables that can be measured by cytometric methods include cell size, cell count, cell morphology (shape and structure), cell cycle phase, DNA content, and the existence or absence of specific proteins on the cell surface or in the cytoplasm.
Applications of OptiDrop
Expansive Utility: OptiDrop unlocks various downstream applications, including drug screening, environmental monitoring, immunotherapy, and single-cell genomics, revolutionizing research across multiple domains.
Advanced Research Capabilities: Researchers can leverage OptiDrop to study individual cell behavior during drug screenings, identify and monitor environmental contaminants, sort specialized cell populations, and explore genetic heterogeneity within cell populations.
Benefits offered byOptiDrop
Accessible Technology: Unlike conventional cytometers, which can cost up to Rs 40 lakh or more, OptiDrop offers a cost-efficient solution likely priced around Rs 10 lakh, making it accessible to a broader range of research labs and institutions.
Affordable Scalability: OptiDrop’s affordable pricing and scalable design allow institutions of varying sizes to adopt the technology, democratizing access to cutting-edge single-cell analysis capabilities.
Long-Term Sustainability: By reducing the barrier to entry for single-cell analysis, OptiDrop paves the way for sustainable and impactful research initiatives, driving innovation and discovery in the life sciences.
PYQ:
2020:
Which of the following statements are correct regarding the general difference between plant and animal-calls?
1.   Plant cells have cellulose cell walls whilst animal cells do not.
2.   Plant cells do not have plasma membrane unlike animal cells which do.
3.   Mature plant cell has one large vacuole whilst animal cell has many small vacuoles.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Practice MCQ:
The OptiDrop equipment recently seen in news finds application in:
Mains Paper 3: GS3-17.Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology and issues relating to Intellectual Property Rights.
Why in the news?
The “Mother of Dragons” comet, officially named Comet 12P/Pons-Brooks, is making a rare appearance in the Northern Hemisphere skies.
This Halley-type comet, completing its orbit every 71 years, has emerged marking its first sighting since 1954.
What is a Comet?
A comet is a celestial object composed primarily of ice, dust, and rocky particles that orbit the Sun in elongated, elliptical paths.
These icy bodies originate from the outer regions of the solar system, specifically from two regions: the Kuiper Belt and the Oort Cloud.
Comets are often referred to as “dirty snowballs”or“icy dirtballs” due to their composition.
Halley’s Comet is a short-period comet visible from Earth every 75â79 years.
It was last seen in Earth’s skies in 1986 and was met in space by an international fleet of spacecraft. It will return in 2061 on its regular journey around the Sun.
AboutMother of Dragons Comet
It is named by the European Space Agency (ESA).
The comet’s name is inspired by its link to the annual “kappa-Draconids” meteor shower, active from November 29 to December 13 each year.
It has a width of 17 km. the comet features an elliptical orbit adorned with a mysterious spiral of luminous light enveloping its icy nucleus.
It is comprised of ice, dust, rock, and diatomic carbon molecules.
It dissipates a radiant emerald hue when illuminated by the sun, captivating observers with its bright green appearance.
Display Features of the Comet
Renowned for its cryovolcanic eruptions, the comet periodically ejects material from its icy core into space, resulting in breath-taking luminosity.
Its most recent eruption in July 2023, after 69 years, earned it the moniker “devil comet” due to its dramatic outburst, resembling horns likely caused by internal features.
PYQ:
2014:
What is a coma, in the content of astronomy?
(a) Bright half of material on the comet
(b) Long tail of dust
(c) Two asteroids orbiting each other
(d) Two planets orbiting each other
Practice MCQ:
With reference to the âMother of Dragonsâ Comet, consider the following statements:
1.   It is named by the NASA.
2.   It is comprised of ice, dust, rock, and diatomic carbon molecules.
3.   It makes appearances after every 10 years.
Mains Paper 3: GS3-17.Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology and issues relating to Intellectual Property Rights.
Why in the news?
South Korean scientists at the Korea Institute of Fusion Energy (KFE) achieved a significant milestone by producing temperatures of 100 million Celsius for 48 seconds in the Korea Superconducting Tokamak Advanced Research (KSTAR) fusion reactor.
KSTAR maintained the high confinement mode (H-mode) for over 100 seconds, demonstrating stability in plasma conditions crucial for sustained fusion reactions.
This is a world record.
What is Tokamak Technology?
Scientists utilize a tokamak, a donut-shaped reactor, to heat hydrogen variants to extreme temperatures, creating plasma.
This reactor replicates the Sun’s fusion reaction, generating immense heat energy.
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What is Nuclear Fusion?
Nuclear fusion involves fusion of hydrogen and other light elements to release massive energy, akin to the process that powers the Sun and stars.
It is a process where two light atomic nuclei combine to form a heavier nucleus, releasing a large amount of energy in the process.
This occurs under extremely high temperatures, typically in the range of tens of millions of degrees Celsius, and pressure, similar to those found in the core of stars.
In a tokamak reactor, hydrogen variants are heated to extreme temperatures to create a plasma, mimicking conditions found in the Sun’s core.
1 kg of fusion fuel contains about 10 million times as much energy as a kg of coal, oil or gas.
Significance of KSTARâs achievements
Achieving sustained fusion reactions in laboratory conditions unlocks the potential for unlimited, zero-carbon electricity generation.
By extending the duration of high-temperature fusion, scientists aim to sustain plasma temperatures of 100 million degrees for 300 seconds by 2026, pushing the boundaries of fusion research.
ITER is a unique partnership of nations jointly responsible for the construction, operation, and decommissioning of an experimental fusion facility.
It was founded in 2007 and is based at Saint-Paul-lez-Durance, France.
ITER being an experimental reactor, it will allow the study of fusion reaction which governs the Sun and other Stars.
Nuclear fusion will take place in the form of Plasma in a Tokamak.
ITER is run, funded and designed by 7 members:
European Union (EU)
India
China
Japan
Russia
South Korea
United States
Benefits offered by Nuclear Fusion Energy
Clean Energy: Fusion reactions produce minimal radioactive waste compared to nuclear fission, which generates long-lived radioactive waste. Fusion also emits no greenhouse gases, making it an environmentally friendly energy source.
Safety and Controlled Nature: Fusion reactions are inherently safer than nuclear fission reactions. Fusion reactors have a lower risk of accidents and do not produce runaway chain reactions like fission reactors.
Energy Security: Fusion provides a reliable and secure source of energy, reducing dependence on fossil fuels and volatile energy markets. It offers a sustainable solution to meet global energy demand.
High Energy Density: Fusion reactions release a vast amount of energy compared to other energy sources. This high energy density makes fusion power compact and efficient, enabling it to meet large-scale energy needs.
Scalability: Fusion reactors can be designed to scale up or down to meet varying energy demands. They can serve as base-load power plants or complement renewable energy sources, providing flexibility in the energy mix.
Minimal Environmental Impact: Fusion power plants have a small footprint and do not require large mining operations or fuel transportation, reducing their environmental impact. They also produce no air pollution or carbon emissions during operation.
PYQ:
2016:
India is an important member of the âInternational Thermonuclear Experimental Reactorâ. If this experiment succeeds, what is the immediate advantage for India?
(a) It can use thorium in place of uranium for power generation
(b) It can attain a global role in satellite navigation
(c) It can drastically improve the efficiency of its fission reactors in power generation
(d) It can build fusion reactors for power generation
Practice MCQ:
The Korea Superconducting Tokamak Advanced Research (KSTAR) fusion reactor has recently set a world record. In this regard, consider the following statements:
1.   It produced a temperatures of 100 million Celsius for 48 seconds.
2.   It achieved sustained fusion reactions in laboratory conditions.
Mains Paper 2: GS2-18.Bilateral, regional and global groupings and agreements involving India and/or affecting Indiaâs interests.
PYQ Relevance: Mains: Q) Too little cash, too much politics, leaves UNESCO fighting for life.â Discuss the statement in the light of US withdrawal and its accusation of the cultural body as being âanti-Israel biasâ. (UPSC CSE 2019) Q) How will the I2U2 (India, Israel, UAE, and USA) grouping transform India’s position in global politics? (UPSC CSE 2022)
Note4Students:
Prelims: UNSC;
Mains: UNSC; Recent Global challenges;
Mentor comments: âHistory always repeats itselfâ. We all know that it is always easy to start a war but very difficult to decide when and how to call it off. If we see our Global past, the U.S. war in Afghanistan is a classical example. It was launched in October 2001 with the aim of âfinishing off Al-Qaedaâ, later it became a war that dragged on till the U.S. finally made a messy exit in August 2021. Secondly, think about the U.S. war in Iraq in 2003 is another example of a military offensive without a clearly defined exit strategy. The same history applies to the present context of the Middle East (Gaza Issue). Although the UNSC passed the Resolution, still the stand of major powers like the US remains questionable and it eventually leads the situation âback to square oneâ in the context of Israel.
Letâs learn.
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Why in the News?
The Gaza Issue has become a more unwinnable conflict even after the UNSC resolution in March 2024.
The Story behind the war concerning Israel and Hamas:
Israel had two major aims:
To Flatten Gaza: By eliminating Hamas, and getting back all its hostages. With the war well into its sixth month, it is important to review each of these aims. In short, Israel has flattened Gaza, in such a way that Gaza will be virtually uninhabitable (created a Buffer Zone) for years.
Destruction of Hamas: Israel has succeeded in eliminating only 30% of an estimated 30,000 Hamas fighters. Except for the exchange of a few hostages during a brief âhumanitarian pauseâ last November, Israel has not been able to rescue its hostages.
Hamas had two objectives:
Reminding Palestinian cause: To remind the world that while talks of normalization and reconciliation between Israel and the Arab world could go on; the cause for a Palestinian state could not be lost sight of.
Creating Support base: To expose to the world, and especially its support base, the false sense of the invincibility of the Israeli military and its intelligence services. For Hamas, it was not about winning the war militarily but making its voice heard.
Major Challenges that are arising throughout the immediate region:
Neighboring countries in the region, Egypt and Qatar have been separately negotiating for an early ceasefire. Still, Israel had launched an attack on Gaza for the second time, again resulting in heavy civilian casualties.
Meanwhile, Hezbollah has also intensified its missile strikes, inflicting damage to key military assets and loss of lives.
Houthi rebels in the southern part continue to disrupt and block Israeli, U.S., and British ships in the Red Sea, causing heavy economic losses for Israel and its allies.
The passing of UNSC Resolution:
On March 25, 2024, the United Nations Security Council (UNSC) adopted a resolution demanding an immediate ceasefire in Gaza calling for the immediate and unconditional release of all hostages.
Previously, all four resolutions in the UNSC had failed due to veto, thrice exercised by the US. Although the US has historically protected Israel from censure, this time it abstained from voting. The resolution this time drew mixed reactions.
Israel was the first to react, as it canceled the visit of its ministerial delegation to the US. Under Israeli pressure, the U.S. came out with a statement that the UN Resolution is ânon-bindingâ and that Israel can continue what it is doing in Gaza, making a mockery of the whole process in the UNSC.
Hamas, on the other hand, initially welcomed the ceasefire resolution, but later, reiterated its position on a permanent ceasefire accompanied by a complete withdrawal of Israeli forces from Gaza. This turned the whole situation into a âback to square oneâ.
Is the UNSC resolution binding? UNGA resolutions are like recommendations, while UNSC resolutions are normally seen as somewhat more prescriptive. However, there is a difference between UNSC votes under Chapter 6 and Chapter 7 of the UN Charter, with the latter considered as binding.
How can it be enforced? If the UNSC wants to enforce its decision, it can decide to authorize travel bans, sanctions, or the sending of troops.
What are the Impacts on Israel?
Military Impact: The Israeli Army has suffered losses and injuries to its personnel. Militarily, Gaza has been defeated, but Hamas, as an organization, is unlikely to be eliminated.
Economic Impact: Its economy is shrinking rapidly, with some estimates showing a decline of almost 20%.
Political Impact: Currently, it is becoming difficult for Mr. Netanyahu to hold on to his position, domestically and internationally. The U.S., Israelâs staunchest ally, has, in the past few weeks, made it clear that Israel has to restrain itself and cannot bank upon blanket support for any Israeli action in Gaza.
What is the most viable option then for Israel?
Adapting to Ceasefire: To prevent a recurrence of âanother 07th Octoberâ, there is an urgent need for an early ceasefire and withdrawal of forces from the Gaza Strip.
Two-state solution: Stakeholder countries will have to go back to the drawing board and search for a time-bound and acceptable solution.
Conclusion: Israel and Palestine are bound by geography and destiny and the solution for a peaceful future will have to include major compromises and climb-downs from previously stated positions.
Mains Paper 3: Issues relating growth and development, employment
Why in the News?Â
Recently, the âJob for Resilience Reportâ was published by the World Bank. The Report talks about how the South Asia region including India is not making use of its demographic dividend.
The pace of job creation in the region fell well short of the growth in the working-age population, even as it projected a strong 6.0-6.1% growth for 2024-25 for the region in its South Asia region.â
Main findings in this report:
The South Asiaâs labor markets as Emerging markets and developing economies:Â
Declining employment ratio: South Asia’s employment weakened from 2000â23, despite a 6% post-pandemic surge. While most EMDEs remained stable, South Asia declined by 2%, with varied changes within.
Low employment ratios: Except for Nepal, South Asian countries have employment ratios significantly lower than other EMDEs, with South Asia’s ratio at 59%, notably lower than the 70% average elsewhere in 2023.
Employment weakness for men and women: In South Asia, men’s employment ratios declined over two decades, compared with other EMDEs. Women’s ratios, persistently low and half those elsewhere, primarily contribute to South Asia’s lower overall employment rates.
A missing engine of growth: In the 2010s, South Asia experienced a surge in labor productivity growth, which later declined below the EMDE average from 2020â23. Unlike other EMDEs, South Asia’s output growth relied heavily on labor productivity growth and working-age population expansion. However, declining employment ratios hampered output growth.
Report on Indian Scenario:
Trends in employment and labor productivity: India’s employment growth in the 2010s was weak but rebounded post-pandemic. The employment ratio declined significantly until 2022 but partially recovered by 3 percentage points in 2023.
Migrant workers:Â In India, Migrant workers returned to rural areas, and emigration from rural areas slowed, during the pandemic.5 India has the regionâs second-largest share of workers in agriculture (44 per cent) after Nepal.
Employment composition: India’s industrial employment grows with public investments, eased labor regulations, and contract labor. The services sector, led by IT, BPO, and healthcare, thrives on a skilled workforce and digital infrastructure, limiting opportunities for unskilled labor.
Measures to address the challenges highlighted in the Report:Â
Skill Development Programs: Implementing extensive skill development programs to equip the workforce with the necessary skills demanded by the evolving job market, focusing on both technical and soft skills.
Labour Market Reforms: Continuously reviewing and refining labor regulations to strike a balance between protecting workers’ rights and fostering a conducive environment for job creation and investment.
Promotion of Inclusive Growth: Implementing policies aimed at promoting inclusive growth, particularly focusing on increasing women’s participation in the workforce through measures like affordable childcare, flexible work arrangements, and addressing cultural barriers.
Investment in Infrastructure: Continued investment in infrastructure development to facilitate the growth of industries and services, creating more employment opportunities, particularly in rural areas.
Enhancing Productivity: Implementing measures to enhance productivity across sectors through technological advancements, innovation, and efficient resource allocation.
Conclusion: World Bank warns South Asia, including India, risks wasting demographic dividend due to declining employment ratios and low productivity growth. Urgent measures needed: skill development, labor reforms, inclusive growth promotion, infrastructure investment, and productivity enhancement.
PM Modi asked the RBI to prepare a 10-year strategy to make the Indian rupee a globally âaccessible and acceptableâ currency and to meet the credit needs of every segment of the country
What is Global Currency?
A global currency refers to a single currency that is used by every country in the world. This concept involves all nations adopting the same currency for international trade and transactions
What are the major challenges for India to make Rupeea a Global Currency?
Economic Stability: The Indian economy would need to demonstrate consistent stability and growth to inspire confidence among international investors and users of the currency. Â
Liquidity in Financial Market Development:Â These markets need to be deep and liquid to accommodate large volumes of international transactions denominated in INR.
Capital Controls: India currently has restrictions on capital flows in and out of the country. These would need to be eased to facilitate international trade and investment denominated in INR.
Legal and Regulatory Framework: There would need to be robust legal and regulatory frameworks in place to govern the use of the INR in international transactions, including clearing and settlement systems, as well as dispute resolution mechanisms.
International/ Investors Acceptance: Convincing other countries, businesses, and individuals to adopt the INR as a global currency would require concerted diplomatic efforts, as well as initiatives to promote its use in international trade and finance.
Currency Convertibility: Full convertibility of the INR would be necessary for it to become a global currency.
Indian Efforts to Make Rupee a Global Currency:
RBI’s Roadmap for Rupee Internationalization: The RBI has published a report outlining a roadmap for the internationalization of the Rupee. This roadmap recommends actions such as including the Rupee in the Special Drawing Rights (SDR) basket, promoting its use in trade invoicing and settlement, facilitating its use in offshore markets, and developing financial products denominated in Rupees.
Promoting Use of Local Currencies for Cross-Border Transactions: India has been engaging in agreements with countries like the UAE to promote the use of local currencies, including the Rupee, for cross-border transactions.
Way Forward:
Need for Transactions in Rupee: To be an accepted International Currency, the Indian rupee is to be freely used in transactions by residents and non-residents and as a reserve currency for global trade.
Need to increase the Exports: Indian Trades need to be promoted beyond the Asian region. All export and import transactions need to be invoiced in Indian rupees.
Reducing the Constraints: Legal and Regulatory frameworks need to be freed to attract investors for their business profits without hampering security concerns.
