The Government has decided to introduce a bill for digital currency by the Reserve Bank of India and banning of private cryptocurrencies during in this Budget session. This is among 20 new bills, which the Government intends to introduce this session.
The new bill has been titled as ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’. “To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of crytptocurrency and its uses,” purport of the bill as mentioned in Lok Sabha bulletin said.
The bill appears to be based on recommendation given by SC Garg Committee formed by the Centre. The Committee had recommended banning cryptocurrencies and allow an official digital currency.
At this moment, and especially after a Supreme Court verdict, one can buy and sell virtual currency, but there is no legal framework, available making it riskier.
Recently, the price of Bitcoin, the most popular crypto currency, surged to as high as $38,000 attracting more and more people to invest in them. Now the price has come down to around $33.8 thousand.
New institution to fund infra projects
Another important bill is for creation of a Development Financial Institution. For this, the Centre will bring in ‘The National Bank for Financing Infrastructure and Development (NaBFID) Bill, 2021’.
“To set up a new Development Financial Institution (DFI) as a provider, enabler and catalyst for infrastructure financing and as the principal financial institution and development bank for building and sustaining a supportive ecosystem across the life-cycle of infrastructure projects,” the bulletin said while talking about the intent.
Considering the requirement for long-term financing needs of the infrastructure sector, the creation of DFI is critical. At present, there are few institutions, but they are not sufficient. Banks also have a problem in providing long-term financing due to an asset-liability mismatch.
Other economic bills
Other key economic bills such as the Competition (Amendment) Bill, 2021, the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021 and the Pension Fund Regulatory and Development Authority (Amendment) Bill, 2021 have been listed in the Lok Sabha.
The amendment in Competition Act intends to to carry out certain essential structural changes in the governing structure of the CCI like changes to substantive provisions to address the needs for new age markets and opening Regional Offices of the commission across India. The CA bill proposes to reform and speed up the Disciplinary Mechanism of the Institutes.
The Amendment in PFRDA bill will facilitate the Budget Announcement 2019 regarding the separation of NPS Trust from PFRDA and Budget Announcement 2020 for ensuring universal pension coverage as well as strengthening PFRDA.
There will be bill to amend the Mines and Minerals (Development and Regulation) Act. It intends to bring structural changes in the mining sector to accelerate growth and generate employment, improve the competitiveness by removing the legacy issues and attracting private investments by bringing in international best practices in exploration and mining. Another important bill is amendment in Electricity Act.
List of Bills to be introduced in Lok Sabha
1. The Finance Bill, 2021
2. The Commission for Air Quality Management in National Capital Region and Adjoining Areas Bill, 2021 (to replace ordinance)
3. The Arbitration and Conciliation (Amendment) Bill, 2021 (to replace ordinance)
4. The National Capital Territory of Delhi Laws (Special Provisions) Second (Amendment) Bill, 2021 (to replace ordinance)
5. The Jammu and Kashmir Reorganisation (Amendment) Bill, 2021 (to replace ordinance)
6. The Multi-State Cooperative Societies (Amendment) Bill, 2021
7. The National Institute of Pharmaceutical Education and Research (Amendment) Bill, 2021
8. The Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021
9. The Competition (Amendment) Bill, 2021
10. The Pension Fund Regulatory and Development Authority (Amendment) Bill, 2021
11. The National Bank for Financing Infrastructure and Development (NaBFID) Bill, 2021
12. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021
13. The Government of National Capital Territory of Delhi (Amendment) Bill, 2021
14. The Metro Rail (Construction, Operation and Maintenance) Bill, 2021
15. The Mines and Minerals (Development and Regulation) Amendment Bill, 2021
16. The Electricity (Amendment) Bill, 2021
17.The Marine Aids to Navigation Bill, 2021
18. The Inland Vessels Bill, 2021
19. The Prohibition of Employment as Manual Scavengers and their Rehabilitation (Amendment) Bill, 2021
20. The Juvenile Justice (Care and Protection of Children) Amendment Bill, 2021