Mrunal’s Economy Win22 Updates For UPSC & Other Competitive Exams

 The advantage of buying Iphone, Oneplus, Nokia or AndroidOne series of phones is they
provide (free) operating system updates/security patches for 2-3 years. I believe coaching
industry too needs to adopt similar business practice. महंगा फोन खरीदने पर मु� म� �नय�मत ऑपरेिटंग �स�म
क� अपडेटस �मलती है तो, को�चगं �ास म� भी ऐसी सु�वधा होनी चािहए, इस�लए मेने ये मुहीम शु� क� है. 😅😅 🙏🙏
 So, this ‘Win22 update patch/handout’ is for my old batch students who had joined my economy
classes before Feb-2022. It contains updates since the UPSC Prelim-2021 (i.e. October 2021
onwards), including Budget 2022,Economic Survey 2022, and other exam-worthy Economy
Current Affairs Updates in Economy.
IF Attended Mrunal’s Full (Paid) Course �
Type of Before Between Between Between Between From
Student May- Jun-2019 Oct-2020 Jul-2021 Oct-2021 Feb-
Not joined
2019 to Oct- to Feb- to Oct- to Feb- Week4-
Unacademy
2020 2021 2021 Week1 2022
Paid course
(Code: (Code: 2022 onwards
PCB2, PCB4) (Code: (Code:
PCB3) PCB5) PCB6)
Shd see ✅ Yes ✅ � No No
� No
� No
� � No
Win20CSP? Yes need need need need need
Covers
updates for
UPSC-2020
Shd see ✅ Yes ✅ ✅ Yes ✅ Yes No
� No
� � No
Win21CSP? Yes need need need
Covers
updates for
UPSC-2021
Shd see ✅ Yes ✅ ✅ Yes ✅ Yes ✅ Yes ✅ Yes � No
Win22CSP Yes need
Covers
updates for
UPSC-2022
 FAQ1: Do I still need to see Win20- for Win22?: ✅ Yes because in UPSC, they even ask
Contemporary issues of economy which are 3 to 5 years old. So, in above column, If there is ✅
tick mark for your column, then u shd see it.
 FAQ2: “✋ No need” = means you don’t have to watch that series, because it was
taught/embedded within your paid course.

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 1
 Contents
10 Pillar1A1: Money, Digital Payments, Bitcoin, CBDC .......................................................................... 3
10.1 Win20: already covered this in 1A1 (हम आगे पढ़ चुके है) ................................................................. 4
10.2 Win21: already covered this in 1A1 (हम आगे पढ़ चुके है) ................................................................. 4
10.3 � Digital Payments- RBI’s CPS: PPI also eligible ................................................................. 5
10.4 � NPCI: UPI, IMPS, New updates .......................................................................................... 6
10.4.1 � NPCi’s UPI-IMPS- 2 lakh → ⏫5 lakh ........................................................................ 6
10.4.2 � : NPCi’s UPI: International cooperation ........................................................................ 6
10.4.3 � : NPCi's UPMS for bill payment (2022) .......................................................................... 6
10.5 � PLASTIC Money: New Updates after Win21 .................................................................... 7
10.5.1 � MDR: Merchant Discount Rate (�ापा�रक छू ट दर)............................................................... 7
10.6 � � Card Tokenization (Fake Gmail ID Bnaao Yojana) .................................................. 7
10.6.1 � �: Offline Retail Payments Using Cards and Mobile Devices ................................. 8
10.7 � � � Digital Payment: DBT → E-Rupi by NPCi (2021) ................................................... 8
10.7.1 � � �E-Rupi: solves challenges in Physical Procurement/DBT................................ 9
10.7.2 � � � E-Rupi: How does it fix Problems in Physical Procurement/DBT? .............. 9
10.7.3 � � � E-Rupi: Potential Applications in Future [भ�व� म� उपयोग] ................................ 10
10.8 � � Digital Payment: New Orgs in News .......................................................................... 11
10.8.1 � �: Post office to get CBS- says � �Budget-2022 .................................................. 11
10.8.2 � �: Digital Payments- (Proposal) Digital Banks by NITI Aayog (2021) ................ 12
10.8.3 � �: Digital Payments- NeoBanks .................................................................................. 12
10.9 � � Bitcoin / Crypto-Currency Updates Since Win21 Series ........................................ 12
10.9.1 � �: �Hot Wallet vs Cold Wallet................................................................................. 12
10.9.2 � �:Crypto-Winter in Bitcoin Prices (भाव �गरा अब उठ निह रहा है) ....................................... 13
10.9.3 � � � �El-Salvador: Bitcoin becomes a legal tender (2021) .................................. 13
10.10 � �: Bitcoin Profit pe 30% Tax in � �Budget-2022 .................................................... 13
10.11 � �: Bitcoin Purchase pe 1% TDS in �
�Budget-2022 ............................................... 14
10.11.1 � � : Facebook’s Stablecoin Project DIEM/LIBRA sold to another company ... 14
10.12 �≠ � Non-fungible token (NFT: ग़ैर-फ़ं जीबल टोकन) ............................................................... 15
10.12.1 ( �= �+ �+ �+ �) Fungibility: Meaning? ................................................................... 15
10.12.2 � Non-fungible token (NFT: ग़ैर-फ़ं जीबल टोकन) ................................................................ 15
10.12.3 � �NFT-Charms? (आकषर्ण) .......................................................................................... 16
10.12.4 � �NFT-Challenges: (चुनौ�तयां) ...................................................................................... 16
10.13 � � Blockchain- new updates: DEFI and BalPurskar ..................................................... 16
10.14 � � � Central Bank Digital Currency (CBDC) .............................................................. 17

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 2
 10.14.1 � � �= � �Benefits of CBDC (इसके फ़ायदे) ............................................................ 17
10.14.2 � � � CBDC: Bahama’s Sand Dollar & Nigeria’s eNAIRA ................................ 18
10.14.3 � � � CBDC Challenges: interest rate (�ाज क� मगजमारी/दु�वधा) ................................. 18
10.14.4 � � �= � �Challenges of CBDC ........................................................................ 19
10.14.5 � � � � CBDC: Conclusion / �न�षर् ....................................................................... 19
10.15 � Digital Payment related Index / Competitions ................................................................ 19
10.15.1 �RBI Digital Payments Index (DPI: िड�जटल भुगतान सूचकांक)............................................. 19
10.15.2 18.17.6 � � RBI’s Financial Inclusion Index (�व�ीय समावेशन सूचकांक) .......................... 20
10.15.3 Harbinger Hackathon 2021............................................................................................... 20
10.16 � �MRUNAL’S ECONOMY COURSE FOR UPSC PRELIMS & MAINS .................. 20
10.16.1 � Mock question for Prelims......................................................................................... 20
10.16.2 � � �1⃣ � Mock question for Mains/ESSAY ........................................................ 21

10 PILLAR1A1: MONEY, DIGITAL PAYMENTS, BITCOIN, CBDC

Mrunal’s six pillars of economy are divided as following

 1) MBFIP [money, banking, finance, insurance and pension]

o 1A-1: Money: barter, Digital payment, Bitcoin, NFT, CBDC etc. [we are here right now]
o 1A-2: RBI’s monetary policy- CRR, SLR, Repo etc
o 1B-1: Classification of Banks-NBFC
o 1B-2: Burning issues in Banking sector- NPA, IBC, BASEL
o 1C: SEBI Sharemarket, Companies Act
o 1D: Insurance, Pension, Fin. Inclusion, EPFO, ESCI etc.
 2) Budget, taxation GST black money subsidy disinvestment deficit FRBM
 3) Intl. Trade, Balance of Payment, WTO, IMF etc,
 4) Sectors of Economy-
o 4A) Agriculture, Dairying, food processing
o 4B) manufacturing, services, Ease of doing business, IPR
o 4C) GDP, Unemployment, Inflation
o 4Z) Microeconomics
 5) Infrastructure
o 5A) Bijli-Paani-Sadak (Energy water transport)
o 5B) Housing, urban, rural, communication, PPP, investment models
 6) human resource development (HRD)
o 6A) Hunger, Health, IMR, MMR etc
o 6B) education, skill, poverty lines & schemes
o 6C) weaker section, HDI, SDG

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 3
10.1 WIN20: ALREADY COVERED THIS IN 1A1👇👇 (हम आगे पढ़ चुके है)
 💸💸New Coins and Notes
 💸💸💸�RBI’s App to help the blind identify currency notes
 Budget-2020: A museum for coins
 💳💳 ⏰NEFT becomes free & available 24/7
 💳💳Digital Payment → MDR developments
 �💳💳New Umbrella Entity (NUE) for Retail Payments System (2019)
 🚕🚕🚕🚕 National Common Mobility Card (NCMC, 2019)
 🚕🚕🚕🚕 FASTag for paying toll fees at highways (2017)
 �📒📒📒📒 RBI’s Nandan Nilekani Panel (2019: Jan to May)
 💳💳💳💳💳 Payment and Settlement Systems in India: Vision 2019 – 2021
 💮💮💮💮💮💮 Cryptocurrency & India → RBI ban revoked by SC
 💮💮💮💮 Cryptocurrency & India → ⚖ Banning of Cryptocurrency Bill, 2019
 💮💮💮💮💮💮 Cryptocurrency & world → Stable-coins
 🌐🌐🌐🌐🌐🌐🌐🌐 Cryptocurrency & world → UNICEF’s Crypto Donation Fund

10.2 WIN21: ALREADY COVERED THIS IN 1A1👇👇 (हम आगे पढ़ चुके है)
 🐷🐷🐷🐷🐷🐷 Cheque → Positive Pay Mechanism for Cheques in CTS
 💸💸💸💸Next Generation Treasury Application (NGTA), 2020-Oct
 QR Codes: compulsory to implement UPI/Bharat QR from 2022
 �📜📜📜📜 Perpetual Licence for Payment System Operators?
 🕵🕵 💳💳💳💳 Payments Infrastructure Development Fund (PIDF) 2020-Jun
 🕵🕵 💳💳 📯📯 Scheme of Offline Retail Payments Using Cards and Mobile Devices
 🐯🐯🐯🐯🐯🐯 Central Bank Digital Currency (CBDC)
 🤫🤫🤫🤫🤫🤫🤫🤫 Redenomination: drop zeros, change name
 🤫🤫🤫🤫🤫🤫🤫🤫 Iran = Toman to replace Iranian Riyal (2020)

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 4
10.3 💸💸 📡📡 DIGITAL PAYMENTS- RBI’S CPS: PPI ALSO ELIGIBLE

Figure 1: Note: Above chart not 100% legally-technically correct. There may be instances where a Bank’s App may be giving both NEFT &
IMPS facility. This chart is meant for simple illustration for MCQ, and NOT for submitting as evidence in some Supreme Court PIL case.
In short, while reading this handout, “🚩🚩🚩🎓🎓” =avoid this mentality.

RBI's centralised payment systems (CPS)#FAQ1 NPCi’s IMPS

⏰RBI’s NEFT:
RBI’s RTGS: Real Time Immediate Payment
� Type National Electronic
Gross Settlement Service
Funds Transfer
� Target � Target customers � Target customers � Target
customers customers
₹ 1 to max ₹2 lakhs
💸💸 Transfer Min ₹2 lakh to ₹2000
upto ₹10 lakhs (SBI). [this limit ⏫ to ₹5
Amount crores (SBI).
lakh in 2021]
Settles net amount
🚛🚛 Settlement 🤩🤩Instant settlement 🤩🤩Instant
between banks at
mechanism (झटपट/ तुरंत �नपटारा) settlement
interval of 30 min.
⏰ Timing 24/7 on all days (िदन रात अ�वरल �प से)
- BEFORE-2021: Only Banks can provide this Banks + Prepaid
� Who can facility of NEFT & RTGS Payment
provide this - 2021: RBI announces that non-bank Prepaid Instrument (PPI)/
facility? Payment Instrument (PPI) can also become mobile-wallet
members of centralized payment systems (CPS = companies e.g.

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 5
 RBI's centralised payment systems (CPS)#FAQ1 NPCi’s IMPS
NEFT & RTGS). So, in future, Amazonpay Amazonpay,
Wallet etc may also directly allow money Phonepe, Mobikwik
transfer via this.
#
FAQ1: � � � Why doesn’t RBI Merge RTGS & NEFT? Ans. RBI may have some technical
operational reasons for it. RBI never bothered to disclose it in some big press release or newspaper
headline. So I never bothered to do Google search/PHD, because it is an inefficient way of preparing
for UPSC. Nonetheless, if u feel morally-outraged then Send suggestion to RBI Governor. Until
implemented, prepare things as given in handout.

10.4 💸💸 📡📡 NPCI: UPI, IMPS, NEW UPDATES

2008: National Payment Corporation of India(NPCi) is “Not for Profit Company” setup to Provide
cost-effective payment solutions / technology for Banks. Some of its famous innovations are:

 Immediate Payment Service (IMPS): for transferring money.

 Unified Payment Interface (UPI): App development Technology works on on IMPS. E.g.
Axispay, SBIBuddy etc.
 Bharat Interface for Money (BHIM): NPCi’s own money transfer app based on UPI & IMPS.

10.4.1 💸💸 📡📡 NPCi’s UPI-IMPS- 2 lakh → ⏫5 lakh

2021: Reforms by RBI (using powers of payment and �BEFORE �AFTER
settlement systems act 2007 )
IMPS Daily Money transfer limit ₹2 lakhs ₹5 lakhs
UPI Based Mobile Apps: Transaction limit for ₹2 lakhs ₹5 lakhs
A) Retail Direct Scheme for investment in G-secs
B) Initial Public Offering (IPO) applications

10.4.2 💸💸 📡📡:🤝🤝🌐🌐 NPCi’s UPI: International cooperation

 Bhutan became the first country outside India to adopt UPI and its QR code.
 India and Singapore joint-project to link UPI with PayNow (Singapore’s money transfer system)
→ 😍😍 Indian tourists can use BHIM/UPI-walle apps for shopping in Singapore (After
converting Rupee into Singapore’s currency online. HOW? NOT.IMP).

10.4.3 💸💸 📡📡:⚡⏲ NPCi's UPMS for bill payment (2022)

2022-Jan: NPCi ‘s daughter/subsidiary company Bharat BillPay Ltd. (NBBL) Company → launched
a Unified Presentment Management System (UPMS) → users can set up standing instructions for
auto-debit for their recurring bill payments online e.g. "pay every month's electricity bill from my "X"
bank account, automatically."

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 6
10.5 💳💳 PLASTIC MONEY: NEW UPDATES AFTER WIN21
Credit & Debit Cards are known as Plastic Money- says NCERT. Here are some new developments:

10.5.1 💳💳 MDR: Merchant Discount Rate (�ापा�रक छू ट दर)

MDR is the fees that a merchant must pay to his (acquirer) bank for every card/digital transaction.
MDR is also known as Transaction Discount Rate or TDR)

⇒ MDR fees is shared among 3 parties 1) customer’s bank 2) merchant’s acquiring bank 3)
payment gateway/service provider (e.g. Visa, Mastercard, Rupay). (तीन प�ों म� इस फ�स को बांटा जाता है)

Instrument UPI NPCI's Rupay NPCI's Rupay Credit Card

Debit Card Mastercard/Visa’s Debit/Debit card etc
MDR % on transaction value 0% 0% “x”% (NOT ZERO)
⇒ 😥😥 So, if a banker promotes Rupay debit card / UPI App → Banker will not earn MDR fees. So
bankers promote MasterCard & Visacard to their customers and merchants (instead of
Rupay/UPI). (ब�कर को मज़ा नहीं आता �ोंिक उसे डे�बट काडर् व यूपीआई एप म� MDR क� फ़�स निह �मलेगी।)
⇒ So, 2021-Dec: MEITY (Ministry of Electronics & Information Technology) announced up to
₹2,000 MDR Subsidy to Merchant's Bank for RuPay debit cards transactions and UPI
transactions.# (तो सरकार ने ब�करों को बोला क� तुमको मज़ा िदलवाने के �लए MDR नुक़सान के एवज़ म� स��डी द�गे)
⇒ 😍😍 this will encourage digital payment especially in small towns / rural areas िड�जटल भुगतान ऊपर
लगने वाले मरच� िड�ाउं ट रेट पर सरकार द्वारा स��डी दी जाएगी यिद भुगतान �पये डे�बट काडर् या UPI द्वारा हो रहा है
⇒ 😥😥 Foreign Players like MasterCard and Visacard are opposed to Indian govt’s preferential
treatment given to India's Rupay. (इस प्रकार क� भेदभावपूणर् रवैये से �वदेशी काडर् कयां नाराज़)
� � FAQ: "I've 500 jaat ke PHD doubts & counter arguments about this MDR subsidy" Ans.
�
Plz waste your time reading egazette.nic.in/WriteReadData/2021/231960.pdf

10.6 💳💳 📧📧 CARD TOKENIZATION (FAKE GMAIL ID BNAAO YOJANA)

Figure 2: थ�ड़ से डर नहीं लगता, Identity theft se lagtaa hai!

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 7
⇒ While doing online-shopping, customer has to enter following data about his credit/debit card:
Account Holder’s Name, 16-Digit Account Number, Expiry Date, Security Code (CVV/PIN).
⇒ Often merchant site (e.g. Amazon) offers to store this data in their server so next time customer
does not have to retype it and he can do “one click purchase”. 😰😰Challenge? Data may be
hacked/leaked/misused.
⇒ Tokenisation = creates a set of numbers called ‘token’ to replace/hide the sensitive card data
such as the 16-digit account number, expiry date and security code. (हैिकंग से बचने वा�े असली काडर्
नं बर क� जगह टोकन/का��नक-नं बर बनाकर दे दो एसी बात है। तािक �वक्रेता का आपके काडर् क� गु� जानकारी �मले नहीं)
⇒ This ensures your card information is not disclosed to merchant website.
⇒ Card owner can generate Tokenization through visiting card-issuer’s/banker’s website/App
through laptops, desktops, tablet, wearables (smartwatch) etc.
⇒ From 1/1/2022, Merchant / Seller can’t store card details. He’ll have to delete previous card data.
Only source banks and card issuers (such as Rupay, Visa, and Mastercard) can store card details.
However, bankers, card companies wanted more time to upgrade servers/technology, so RBI
postponed the norms.
िकसी भुगतान के दौरान अपना वा��वक क्रेिडट काडर् या डे�बट काडर् देने क� जगह ग्राहक, एक टोकन नं बर का इ�ेमाल कर� तािक उसका
डेटा चोरी होने का /हैिकंग होने का ख़तरा कम हो जाएगा.

10.6.1 🕵🕵 💳💳📡📡:📵📵 Offline Retail Payments Using Cards and Mobile Devices
 While mobile phones, cards, e-wallets, etc. available but, internet connectivity issues especially in
rural/remote areas😰😰😰😰(ग्रामीण और दुगर्म प्रदेशों म� इं टरनेट क� ख़राबी/सम�ाएँ )
 2021: RBI allowed offline mode of payments using cards, wallets or mobile devices upto Rs.200
per transaction AND overall limit of Rs 2,000 for all transactions until balance in the account is
replenished/recharged. (overall limit is prescribed to prevent big frauds if card/mobile gets
stolen. HOW? Ans. 🚩🚩🚩🎓🎓 James-Bond-girl not important) (इं टरनेट बं द हो तब भी िड�जटल भुगतान हो
सके उस प्रणाली. शु�आत म� एक-एक ल�नदे� म� २०० �ादा का लेनदेन नहीं हो सकता। और कु ल �मलाकर 2000 �पये से �ादा
का लेन देन नहीं हो सकता जब तक िक ग्राहक अपने काडर्/ ब�क खाते इ�ािद म� पैसा वापस न भर दे।)
 🤩🤩Benefit? Error-free digital transactions in areas with poor internet connectivity (दुगर्म प्रदेश जहाँ
इं टरनेट क� सतत् �प से सेवा उपल� नहीं, वहाँ पर भी िड�जटल भुगतान को प्रो�ाहन �मलेगा.)

10.7 �💸💸💸💸 DIGITAL PAYMENT: DBT → E-RUPI BY NPCI (2021)

- (Origin) E-rupi is an SMS /QR Code based Prepaid Cashless Electronic Voucher created by
National Payment Corporation of India (NPCI) using its UPI Platform. [�ूआर कोड आधा�रत प्रीपेड
नगदीरिहत इले��ॉ�नक रसीद �जसे भारतीय रा��ीय भुगतान �नगम (एनपीसीआई) ने अपने यूपीआई �ेटफॉमर् का उपयोग कर बनाया]

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 8
- It is also supported by finance ministries Department of Financial Services and Health ministry’s
National Health Authority (NHA) [�व� मं त्रालय के �व�ीय सेवा �वभाग और �ा� मं त्रालय के रा��ीय �ा�
प्रा�धकरण ने भी इसक� मदद क� है]
10.7.1 �💸💸💸💸E-Rupi: solves challenges in Physical Procurement/DBT
Suppose the government wants to give Rs.500 worth shoes to schoolchild of a poor family. Following
as the ways to accomplish it. [मान ली�जए सरकार �ू ल के गरीब ब�ों को ₹500 के जूते देना चाहती है]
Method तरीका How? 😰😰Problem सम�ा
Physical Government ⇒ 😰😰Minister/IAS demand bribe from
procurement (Minister/IAS) buys Bata/Lakhani/XYZ to Approve the government
[सरकार भौ�तक shoes from purchase tender. [सरकारी ठे का पा�रत करवाने के �लए �र�त]
��प म� जूतों क� Bata/Lakhani/XYZ ⇒ 😰😰Substandard quality of shoes may be
ख़रीद कर� और company → send to purchased from crony company who paid bribes.
ग़रीब ब�ों दे,] school principal → ⇒ 😰😰District education Officer (DEO), School
Delivered to Child principal may siphon/selloff shoes to the retail
[लेिकन यहाँ मं त्री, अफ़सर, stores instead of giving to poor children [जूतों का
�वद्यालय के हेडमा�र पैसे या गबन. हेड मा�र गरीब जूतों के ब�े जूते क� दुकान को बेच दे]
जूतों का ग़बन कर� ऐसा डर]
⇒ 😰😰Shoe Size mismatch → Child may get the
“sarkaari” shoes but may not wear it= waste of
taxpayer’s money. [जूते ब�े के पैर के नाप के बराबर ना हो]
Direct benefit Govt transfers ₹500 to 😰😰Father may use DBT money on Vimal, 🍷🍷liquor
transfer father’s account and gambling instead of buying shoes for the child
(DBT: प्र�� Govt transfers ₹500 to 😰😰Child may use DBT money to buy 🍫🍫Chocolates
लाभ अंतरण) child’s account or 🔫🔫Video Games instead of shoes.
10.7.2 �💸💸💸💸 E-Rupi: How does it fix Problems in Physical Procurement/DBT?

⇒ Govt (e.g. Education department) deposits money in a bank account (e.g. SBI) → NPCi
generates E-rupi code. [Thus it is “pre-paid” by Government for beneficiary]
⇒ E-Rupi is person-specific, and purpose- specific digital voucher where it is not required for the
customer to have a bank account. It is operable on basic phones (e.g. old Nokia handsets), even
in areas which lack an internet connection.

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 9
⇒ Government sends this E-Rupi QR Code/SMS Code to father→ ke “Use this Rs.500 to buy shoes
for child” [सरकार लाभाथ� के मोबाइल फ़ोन पर इ-�पी नामक कोड भेजेगा, के वल जूता ख़रीदने के �लए इ�ेमाल हो सके ]
⇒ Father takes child to the shoe store, buys the shoes Pays via E-rupi digital code. Shoestore then
sends E-rupi code to banker (e.g. SBI) to redeem money (which was deposited by Govt).
⇒ Suppose Child prefers Bata (₹800 ka more comfortable leather shoe) over Lakhani (₹500 ka less
comfortable rubber shoe) → Father pays E-Rupi QR(₹500)+Father’s own cash (300)= buy Bata.
Thus E-rupi gives more freedom to the beneficiary to purchase the goods as per their
requirement/preference. [लाभाथ� को अपनी पसं द और ज़�रत के िहसाब से सामान ख़रीदने का अवसर/ �तं त्रता �मले]
⇒ IF Footware store “X”’s staff very arrogant then father may goto Footware Store “Y” = Dignity &
self-respect & power to customer. Unlike PDS stores where beneficiary has to stand in long
queues and often get humiliated by the shopkeeper for asking questions abt quality of
rice/wheat/sugar/edible oil.[ सरकारी राशन क� दुकान पर अगर ग़रीब लाभाथ� अनाज क� गुणव�ा या खाद्य तेल म� �मलावट
क� कोई �शकायत करे तो उसे दुकानदार ज़लील करता था . लेिकन E-rupi के चलते ग्राहक को �तं त्रता �मलती है िक यिद कोई
दुकानदार बतमीजी करता है तो ग्राहक दू सरी दुकान चला जाएगा. ]
⇒ Money will ultimately go to the best quality shoe maker (e.g. Bata). Less scope for corruption/
purchase of substandard quality shoes by taking bribes by the Minister/IAS = crony capitalism
will decrease. [लाभाथ� वो सामान ख़रीदेगा जो उ� गुणव�ा का है. इससे पहले कं प�नयां मं त्री अफ़सरों को �र�त �खलाकर,
लाभाथ�ऑ को घिटया िक़� का सामान दे दी थी= वो प�पाती पूंजीवाद कम होगा]
⇒ Father will not be able to use this QR code at Gutkha Parlor, Liquor Shop or Gambling Den.
[ल��त व�ुओ ं के अलावा िकसी अ� चीज़ जेसे गुटका, शराब,जुए म� इ-�पी कोड इ�ेमाल नहीं हो पाएगा]
⇒ Footwear store accepted the E-rupi payment → money transfer takes place through banks = less
scope for evading GST, Income Tax, Corporation Tax. [unlike cash transactions] [िड�जटल तरीक़े से
ब�क खाते म� पैसों का लेन देन होगा तो करचोरी और कालेधन के अवसर भी �ापारी के �लए कम होंगे]
⇒ E-Rupi issued on mobile phone. = Less touchpoints between the beneficiary and government
officials. Beneficiary need not stay in queue to get the physical vouchers from govt office = less
scope for bribery and harassment [कोड सीधे लाभाथ� के मोबाइल फोन म� आ जाएगा। गरीब आदमी ने सरकारी द�र के
ध�े नहीं खाने होंग,े सरकारी बाबू को �र�त नहीं देनी होगी]

10.7.3 �💸💸💸💸 E-Rupi: Potential Applications in Future [भ�व� म� उपयोग]

- 2021: first use of e-RUPI was implemented for COVID-19 vaccination program. >2.2 lakh
beneficiaries given E-Rupi → get vaccines from pvt clinic
- E-Rupi can also be used to help mother, child, poor families under various schemes. Medicines
for TB, Corona etc. Fertilizer subsidies for farmers [खाद्य दवाइयां उवर्रक क� स��डी दी जा सके गी]
- Even private sector companies can issue it for
o 1] employees e.g. Gym membership, golf club membership, hotel tourism travel.
o 2] Company use it for Corporate Social Responsibility (CSR: More in 📑📑Pillar#1C2)
programs. [�नजी कं प�नयां भी कमर्चा�रयों को �व�वध चीजों के �लए दे सकती ह�. कारपोरेट सामा�जक दा�य� अदायगी
म� भी इसका इ�ेमाल स�व]
�Conclusion: Appreciable step by government to deliver the entitlements to the poor families in
targeted and leakproof manner. This will help in a long way in increasing the accountability,

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 10
transparency and efficacy of Direct benefit transfer (DBT) programs. [सरकार का प्रशं सनीय कदम. गरीब
प�रवारों को ल��त �प से और �रसावमु� तरीके से सरकारी योजनाओं का लाभ �मले, �जससे प्र�� लाभ अंतरण योजनाओं क�
जवाबदेही, पारद�शता और प्रभावका�रता बढ़ेगी।]

10.8 💸💸💸💸 🏦🏦 DIGITAL PAYMENT: NEW ORGS IN NEWS

10.8.1 💸💸💸💸📭📭: 🏦🏦 Post office to get CBS- says 👜👜👜👜Budget-2022

CBS ( full form: Core Banking Solution /system It is a banking software with web-platform for
centralized data management & branch-less banking. E.g. Finacle; BanCS; E-Kuber (used in RBI)

Dept of Post → Post Office Savings Bank (PoSB) India Post Payments Bank (IPPB)
foundation Govt Savings Bank Act 1873 Companies act 2013 → Public ltd
company registered in 2016
Accept demand Savings account only 1. Current account
deposits? 2. Savings account
Accept time YES No, bcoz Payment Bank cannot
deposits? accept time deposits – e.g. Fixed
Deposits (FD)#
Can keep more YES No, bcoz payment bank not
than ₹2 lakh allowed to keep more than ₹2 lakh
deposit per deposit per customer. (previously,
customer? the limit was ₹1 lakh)
Can give loans to No. ₹₹ goes to NSSF National Small No. Because payment banks not
individual? Savings Fund (NSSF)→ loans to allowed to give loans or issue
Union and (selected States), with credit cards.#
technical norms which not imp for us.
E-Banking /ATM Before: Not possible directly. yes , UPI, BHIM, NEFT, IMPS
etc.? 👜👜👜👜Budget-2022: reformed this- possible because IPPB uses CBS.
given below:
- 👜👜Budget-2021: Post Office Savings Bank (POSB) will be connected with Core Banking System
(CBS). So, their depositors too can use E-banking/net-banking, mobile banking, ATMs etc.
- Benefits? 🤩🤩1) Convenience for POSB depositors esp. villagers, farmers and senior citizens.
🤩🤩2) interoperability (ability to use POSB deposit money in above NEFT/ATM etc facilities)
- Interoperability is the ability of customers to transact across commercially and technically
independent payment platforms. �ावसा�यक और तकनीक� �प से �तं त्र �ेटफाम� के बीच लेन-देन करने क� सु�वधा

# � � � FAQ: “Paytm Payment gives loans, credit cards & accepts FD then u wrote “payment
bank cannot give”!?”

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 11
Ans. As per the RBI Rules, “Payment banks are not allowed to accept fixed deposit and they are not
allowed to give credit cards or loans.” Paytm Payment bank has tied up with other scheduled
commercial banks such as “Indus Ind Bank” to provide such facilities as an “Agent” of those bigger
banks. As far as the MCQ are concerned, accept what is written in the table.

10.8.2 💸💸💸💸: 🏦🏦 Digital Payments- (Proposal) Digital Banks by NITI Aayog (2021)
⇒ 2021: NITI Aayog proposed setting up 'full-stack digital banks’.
⇒ This will be new type of banks under the Banking Regulation Act, 1949 (BR Act).
⇒ Digital Banks will not have physical branches. They will rely on internet for delivering banking
services. 🤩🤩Benefit? financial inclusion of rural area. (नी�त आयोग ने ऐसा प्र�ा�वत िकया है िक नए िक़� के
िड�जटल ब�क बनाए जाएं जो क� भौ�तक भौगो�लक �प से ब्रांच न हो िक�ु इं टरनेट के ज़�रए ब�िकंग सु�वधा दे इसे गाँव गाँव तक
�व�ीय समावेशन म� मदद �मलेगी)

10.8.3 💸💸💸💸: 🏦🏦 Digital Payments- NeoBanks

- Fancy term for Financial technology (FinTech) related startups & Non-Banking Financial
Companies (NBFC) that are helping banking connectivity using digital channels.
- How they are similar or different than “DIGITAL BANKS”? Ans. ✋Not important. When
Startup-wallas want to attract the attention of inventors, they plant a lot of paid/PR/embellished
news items & columns with fancy terms → Then it doesn’t automatically become “exam worthy
current affairs”…bhai first of all let RBI/NITI/Finance Ministry/HC-SC etc make repeated big
headlines around this, then we’ll see. Observe previous years question papers. (�ाटर्अप क�नीओ द्वारा
�चकने चुपड़े श�ों वाले समाचार �ांट िकए जाते ह� �नवेशकों को आक�षत करने के �लए. तो वो अपने आप परी�ा के �लए काम का
नहीं बन जाता. पहले बड़े सरकारी सं �ानों द्वारा कु छ बड़ी बड़ी सु�खयां बटोरने दो िफर देख�गे.)

10.9 🔗🔗🔗🔗 BITCOIN / CRYPTO-CURRENCY UPDATES SINCE WIN21 SERIES

⇒ [Definition] Cryptocurrency: is a digital / virtual currency created & stored using blockchain
technology.िक्र�ोमुद्रा एक िड�जटल मुद्रा है �जसे �ॉकचेन तकनीक का उपयोग करके बनाया और सं ग्रहीत िकया जाता है।
⇒ examples: Bitcoin, Ethereum, Litecoin, Digicoin, Dogecoin etc..
⇒ (Origin) There are 3 ways to acquire a cryptocurrency 1) digital mining 2) selling goods/services
to miner/owner of crypto 3) exchanging fiat money with crypto.
⇒ 😰😰Dangers? Tax Evasion, Money Laundering, Terror Finance, Electricity Waste, Etc

10.9.1 🔗🔗🔗🔗👜👜👛👛:🔥🔥❄Hot Wallet vs Cold Wallet

Just like you store money in Paytm DIGITAL Wallet. You can store Bitcoin and other
cryptocurrency in Crypto Digital Wallets. Such wallet could be hot wallet or cold wallet.
Related to Cryptocurrency

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 12
⇒ 👛👛:🔥🔥 Hot wallets are ✅connected to the internet, (e.g. an online app)
⇒ 👛👛:❄Cold wallets are ✋NOT connected to internet (e.g. a USB pendrive).

10.9.2 🔗🔗🔗🔗📉📉:🥶🥶☃Crypto-Winter in Bitcoin Prices (भाव �गरा अब उठ निह रहा है)

Between 2021-Nov to 2022-Jan: Bitcoin fell from ~$70,000 to < $35000 → almost 50% loss! &
similar situation in many other cryptocurrencies. Some experts fear the prices will remain frozen in
this range for upcoming months, hence using the term "Crypto-Winter" to denote it. (िक्र�ो-मुद्राओं के
दाम �गर गए ह� और वापस ऊपर निह चढ़ रहे, लगता है जेसे के िक्र�ो-बाज़ार सद�/ठं डी म� जम गया है)

10.9.3 🔗🔗🔗🔗 🤘🤘🏳🏳El-Salvador: Bitcoin becomes a legal tender (2021)

⇒ El-Salvador: Two Legal tenders [1) US Dollars (from 2001). [2) Bitcoin (from 2021).
⇒ Thus, El-Salvador became 1st nation in the world to allow Bitcoin as legal tender. अल-सा�ाडोर देश
म� दो वैधा�नक �न�वदा: अमे�रक� डॉलर, �बटको�न। �बटकॉइन को ऐसी अनुम�त देने वाला यह दु�नया का पहला देश है।
⇒ Shopping, Salaries, tax payment may be done using Bitcoins or US Dollars. (ख़रीदारी, वेतन भुगतान, कर
भुगतान म� दोनों ही मुद्राओं का इ�ेमाल कर सकते ह�)
⇒ Exchange rate between Bitcoin & US dollar (e.g. 1BTC=35,000 US Dollars) will be decided by
market forces of supply & demand. �बटकॉइन तथा अमे�रक� डॉलर के बीच मुद्रा �व�नमय दर बाज़ार श��याँ तय करेगी।
⇒ If foreign investors bring bitcoins to El-Salvador → they will be given certain tax benefits. (�वदेशी
�नवेशक यिद बीटको�न के ��प म� अल-सा�ाडोर मे पैसा �नवेश कर�गे तो सरकार उ�� करों म� कु छ �रयायत�/छू ट/माफ़� देग़ी)

10.10🔗🔗🔗🔗:🍋🍋 BITCOIN PROFIT PE 30% TAX IN 👜👜👜👜BUDGET-2022

15

10

Asset Type Loss offsetting/losses deduction allowed in Capital Gains Tax?

Shares/Equities YES. e.g. Investor sold his Reliance share @profit of ₹100 &
Truck@loss of ₹25 → then he need to pay 10-15% CGT on NET
profit of 100-25= ₹75 only

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 13
 Bitcoin, ⇒ NO. Losses from transfer of digital assets can’t be set off
cryptocurrencies, Non against any other income.
Fungible Tokens (NFT) ⇒ e.g. Investor sold his Reliance share @profit of ₹100 &
& other Virtual Digital Bitcoin @loss of ₹25 → then he need to pay 10-15% CGT
Asset (VDA) on Reliance Profit ₹100
� � � FAQ: I’ve 500 types of doubts about this loss-
offsetting. Ans. Plz consult your Chartered Account. I’ve given
a very basic illustration for general understanding.
- Thus, while crypto trading is not illegal at present, but, the Indian govt does not want to
encourage it- that's why such a high level of taxation- similar to 30% tax on winnings casino-
gambling, lottery or horse-race-betting. (सरकार इतना �ादा टै� लगा रही है �ोंिक वह �नवेशको को िक्र�ॉमुद्रा म�
�नवेश करने के �लए प्रो�ाहन नहीं देना चाहती.)

10.11🔗🔗🔗🔗:🍋🍋 BITCOIN PURCHASE PE 1% TDS IN 👜👜👜👜BUDGET-2022

- � �Budget-2022: 1% Tax Deducted at Source (TDS) on buying of Virtual Digital Asset (VDA
– such as bitcoin, NFT etc)- to trace the money trail / tax evasion.
- �Challenge/Criticism? Difficult to trace if buyer/seller doing transactions using crypto-wallets
that are not linked with PAN-Bank Accounts. (पैसों के लेन देन पर �नगरानी रखने के �लए TDS भी काटा जाएगा.
हालाँिक वा��वक �ज़दं गी म� इसम� TDS काटना काफ़� मु��ल होगा ऐसा �वशेष�ों को डर है।)

10.11.1 🔗🔗🔗🔗 : 💰💰🥇🥇Facebook’s Stablecoin Project DIEM/LIBRA sold to another company

- Stablecoin is a digital currency backed by real-world assets such as fiat currencies, gold, silver etc.
- 2019: Meta Company (Facebook) announced the Libra stable coin. But France opposed → 2020:
Facebook renamed it to “Project Diem” (means “day” in Latin) → still opposition continued by
American and European authorities → Facebook sold Project DIEM to a company Silvergate.

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 14
10.12💠💠≠ ❇ NON-FUNGIBLE TOKEN (NFT: ग़ैर-फ़ं जीबल टोकन)

10.12.1 (⬜=◻+◻+◻+◻) Fungibility: Meaning?

Item Can it be Is mutual substitution possible in terms of value? Is it
subdivided in fungible?
smaller units?
₹2,000 Yes ₹500x 4 Yes ₹500 x 4 Notes can buy same quantity of ✅Yes
Note Notes=2000 goods as a single ₹2000 Note
1kg gold Yes 100gm x 10 Yes 100gm x 10 biscuits can buy same quantity of ✅Yes
bar biscuits=1kg gold goods as a single 1kg gold bar
bar
1Bitcoin 1BTC=10^8 Satoshi Yes 1BTC’s value = 10^8 Satoshi coins. So,
YES
coins theoretically, they buy same quantity of goods
100 gm Bigger single piece diamond considered to be more precious/valuable ✋No
single than small-small pieces diamond. So, 100gm Single_Big_Diamond
Diamond =NOT equal 1gm x 100 small_Diamonds, in terms of value
Shares, NOT possible (How Ref: 📑📑Pillar#1C: SEBI sharemarket) ✋No
Bonds
NFT NOT possible. Explained below. ✋No

10.12.2 💠💠 Non-fungible token (NFT: ग़ैर-फ़ं जीबल टोकन)

⇒ (Definition) NFT is a Digital file such as photo file (JPEG), Animated image (GIF), music file
(MP3) etc Stored using blockchain Technology. �ॉकचेन प्रौद्यो�गक� द्वारा सं ग्रिहत क� गई एक फ़ोटो, सं गीत इ�ािद
िक़� क� िड�जटल फाइल है।
⇒ They cannot be subdivided and/or their individual sub-units cannot be exchanged with one
another. Because their values are different based on buyer’s preference. So NFTs are non-
fungible. अलग अलग �चत्र/सं गीत कृ �तऑ का मू�, ग्राहक क� पसं द से िहसाब से अलग अलग हो सकता है इस�लए उ�े छोटे
टुकड़ों म� �वभा�जत करना / आपस म� उनक� अदला-बदली नहीं हो सकती.
⇒ Mass Hysteria to purchase such digital assets from new-age artists using (mostly) Ethereum
cryptocurrency. नए ज़माने के िड�जटल �चत्र/धुन बनाने वाले कलाकारों से नीलामी म� एनएफटी ख़रीदने का सामूिहक पागलपन
�नवेशको चल रहा है.
⇒ e.g. American digital artist Beeple’s Non-fungible token JPEG File (Title “Everydays: the First
5000 Days”)→ auctioned for $70 million in Ether Cryptocurrency.
⇒ Robot Sophia created a digital painting/art "Sophia Instantiation" (NFT)→ Auctioned for more
than 6 lakh dollar$.
⇒ Many sportsmen, filmstars also creating NFT out of their posters/autographs but we’ll not waste
preparing all that General Knowledge (GK). (मश�र �खलाड़ी और िफ़� अ�भनेता भी इसे जारी कर रहे ह�)

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 15
10.12.3 💠💠🤩🤩NFT-Charms? (आकषर्ण)
⇒ 🤩🤩1) Multimedia Creators: Easier to trade digital assets (िड�जटल �चत्रकार, िड�जटल धुनकार इ�ािद के �लए
अपनी कृ �तयों क� �बक्र� करना आसान.)
⇒ 🤩🤩2) Easier to verify ownership records. Prevent plagiarism. (िड�जटल कृ �तयों के �ा�म� क� जाँच करना
आसान. नकल�चयों के �लए जालसाजी करना मु��ल.)
⇒ 🤩🤩3) Cinema / Sports tournament / Travel tickets etc can be stored with ownership records.
Helps in Paper-less administration. (�सनेमा / खेल /प�रवहन क� िटकट क� �बक्र� िड�जटल ��प से करना आसान,
काग़ज़ मु� प्रशासन.)

10.12.4 💠💠😰😰NFT-Challenges: (चुनौ�तयां)

⇒ 😰😰1) Started in 2017→ steep price rise in 2021. Single GIF /meme file selling for millions
dollar$ worth of cryptocurrencies. This mass-hysteria / investment-bubble will collapse.
Investors will lose money. ये सामूिहक पागलपन /�नवेश का गु�ारा फट जाएगा तब �नवेशकों का पैसा डू ब जाएगा.
⇒ 😰😰2) Money laundering & terror Finance. धनशोधन और आतं क� �व�पोषण म� दु�पयोग स�व
⇒ 😰😰3) Football selling NFT fan tokens. Sports-fans can purchase said crypto tokens with real-
world money to gain access to digital content & sport-team related voting rights e.g. t-shirt color
or mascot for the football team. British authorities have forbidden the advertisements of fan
tokens because public not fully aware of the risks associated with the investment. यूरोप म� फ़ु टबॉल
�ोट्र्स �ब अपने ग़ैर-फ़ं जीबल िक़� के फ़ै न-टोकन जारी कर रहे ह� लेिकन इनके �व�ापनों पर �ब्रिटश सरकार ने पाबं दी लगाइ है
�ोंिक आम लोगों को ऐसे �नवेश के साथ जुड़े �ए जो�खमों क� जानकारी नहीं है उनका पैसा डू ब सकता है.
⇒ 😰😰4) digital blockchain record keeping → Electricity consumption⏫→ CO2 Emission. (इस
डेटाबेस का सं चालन/वहन करने म� ब�त �ादा �बजली खपत होती है, �जससे काबर्न डाइऑ�ाइड उ�जर्न म� बढ़ोतरी.)

10.13🔗🔗🔗🔗 🗄🗄 BLOCKCHAIN- NEW UPDATES: DEFI AND BALPURSKAR

Blockchain: A secured decentralized database / distributed ledger technology (DLT) that maintains a
continuously growing list of records / transactions.

Old dataentries can’t be deleted, new entries will be visible to all. Mainly used for running
cryptocurrency network. But it can also store any type of data. (�ॉकचेन एक डेटाबेस है जो �रकॉडर् क� �नरंतर
बढ़ती सूची को �वके �ीकृ त �प से बनाए रखता है। सामा� �प से इस �ॉकचेन का इ�ेमाल �बटकॉइन जैसी िक्र�ॉमुद्रा के �रकॉडर् बनाने के
�लए होता है लेिकन इसे अ� डेटाबेस सं ग्रह के �लए भी इ�ेमाल कर सकते ह�.)

DEFI Decentralised finance (DEFI) is a system in which customers can do

financial transactions using blockchain networks, without the need for
middlemen such as banks and card companies. (�वक� द्रीकृ त �व�ीय प्रणाली)
Bal Puraskar certi 2022: Pradhan Mantri Rashtriya Bal Puraskar awards- digital certificates
in blockchain given to through blockchain technology for the first time in India.

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 16
10.14🐯🐯🐯🐯🐯🐯 CENTRAL BANK DIGITAL CURRENCY (CBDC)

क� द्रीय ब�क िड�जटल मुद्रा / सं प्रभु िड�जटल मुद्रा

⇒ (Definition): CBDC a fiat money issued in the digital format by the central bank, instead of
paper/physical format. (कागजी �प म� मुद्रा छापने क� जगह, िड�जटल �प म� वैधा�नक मुद्रा जारी करना)
⇒ (Origin) 2020: People's Bank of China (PBC) started trials to issue its paper fiat money
Yuan/Renminbi in digital format. PBC will use supercomputer to create its fiat currency (Yuan
also called ‘Renminbi’) in digital format → transfer it to the recipient via e-banking e.g. loan to
govt, salary to employee etc.
o 2020-21: Bahamas, Nairobi started such CBDC currencies. Japan, Singapore, Sweden, are
also engaged in such experiments.
o 👜👜👜👜Budget-2022 announced issuance of Digital Rupee using blockchain technology).

10.14.1 🐯🐯🐯🐯🐯🐯=👌👌👌👌Benefits of CBDC (इसके फ़ायदे)

CBDC/ Sovereign Digital Fiat Money / Digital Base Money will provide following benefit
 ⏬ Cost printing and transporting physical currency. लागत और प�रवहन खचर् म� कमी
 ⏬ Scope for counterfeiting. जाली नोट बनाना मु��ल
 ⏫Traceability, ⏬Anonymity: सुराग लगाना आसान, गुमनाम/अ�ात रहेना मु��ल
- Whether money is reaching the intended beneficiary or not? (लाभाथ� को योजना का पैसा �मला
िक नहीं)
- From where did the businessman accumulate this money, did he pay an appropriate
amount of tax or not? Else auto-alert to the Income tax department for tax evasion.
(करचोरी पर �नगरानी आसान)
- ⏬ Terror Finance, Narcotics etc. (आतं क �व�पोषण और नशीले द्र�ों क� त�री म� कमी)
 ⏫Bank deposits → money multiplier → ⏫ efficacy of Monetary Policy. (What does this
mean? (More in 📑📑Pillar#1A2: Monetary Policy)
 ⏬Cost of financial transaction (Don’t have burn petrol visit bank branch for
depositing/withdrawing cash. Can do transactions from home. �व�ीय लेन देन के �पछे ख़चार् कम होगा)
 ⏫ Homogeneity and promptness of disbursal: (��रत पेसा हर जगह/ हर ��� को भेजना)
- With the click of a button, Money could be sent to beneficiaries’ account whether he is
located in Kashmir or Kanyakumari. Irrespective of Curfew/Lockdown/Floods/Bank
Hartals- Students will receive scholarship, farmers will receive subsidy, and senior
citizens will receive pension.
 Can be evolved into a Programmable Digital Currency to control the allocation of new money
for development of various sectors. (अलग-अलग �ेत्रों के �वकास के �लए पैसे को "प्रोग्राम" करके भेजना)

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 17
 - E.g. if RBI issues Programmable-Digital-Rupee → SBI → Student Loan → its Interest
rate will be automatically “X%”,
- but if SBI manager tries to circulate this money as loan-4-buying-luxury-iphone then A)
either computer system will reject it or B) change interest rate to Y%
- [How will that work? Ans. ✋🎓🎓 #Boycott-PHD #थोड़ा-पढ़ो-आगे-बढ़ो.]
 ⏬🤮🤮 Spread of virus through physical currency notes. [Mains Logical Structure: This low level
benefits should be written at the bottom part of the answer.]

10.14.2 🐯🐯🐯🐯🐯🐯 CBDC: Bahama’s Sand Dollar & Nigeria’s eNAIRA

Year Nation Paper Currency CBDC
2020 Bahamas (Capital Nassau) – Bahamaian Dollar “digital B$”, also called ‘sand
1st nation in the world to BSD dollar’. issued Non-Interest
issue CBDC Bearing CBDC
2021 Nigeria (Capital Abuja) Naira the “eNaira”-Non-Interest
Bearing CBDC.

10.14.3 🐯🐯🐯🐯🐯🐯 CBDC Challenges: interest rate (�ाज क� मगजमारी/दु�वधा)

- Paper currency is a non-interest bearing Promissory Note.
- BEFORE: Suppose a if a worker received ₹10,000 salary in paper-currency. He deposited ₹8000
in Axis bank savings account, and kept ₹2000 in cash (for milk, rent, electricity bill, school fees,
VIMAL etc.) So Axis bank required to pay him interest for ₹8,000 savings only. (Neither RBI
nor Axis required to pay him interest on ₹2000 which he kept in CASH.)
- AFTER CBDC: if a worker received ₹10,000 salary in digital-currency → it may automatically go
in his Axis bank savings account & stay there only. He’ll use it digitally via
UPI/BHIM/NEFT/IMPS etc. He can’t take out ‘paper currency’ from his savings account. So,
Axis shall be required to pay him interest on entire ₹10,000. (यिद िड�जटल मुद्रा सीधे ही ब�क म� जमा हो रही है,
और जमाकतार् ग्राहक कभी भी उसे िड�जटल ��प के कारण ब�क खाते से बाहर नहीं �नकल पाएगा, तो ब�क ने तो सदैव उसे �ाज देते
रहेना पड़े। तो ब�करो मज़ा निह आएगा)
- Thus, CBDC ⏫ increase deposit quantity/size/amount. If banker not finding loan takers
immediately → banker will suffer in losses, because banker still need to pay savings interest to
depositors. (�ोंिक अगर ब�कर िडपॉ�ज़ट का पैसा कज़र् के �प म� नहीं घूमा पाएगा तो उसका नुक़सान हो जाएगा)
- Banker may react by ⏫ increasing loan interest rate to cover losses → expensive loans will ⏬
shopping & business activities.
- To prevent such complexities Bahama, and Nigeria issued ‘non-interest bearing’ CBDC (इस�लए
बहामा और नाइजी�रया म� सीबीडीसी को “�ाज-हीन मुद्रा” के ��प म� जारी िकया गया)

🚩🚩🚩🎓🎓 FAQ/Moral Outrage: Then why would Nigerian person accept CBDC, if he’s not going
to earn interest rate? (अगर ��� को �ाज नहीं �मलने वाला �ों �ीकार करेगा?)

Ans. Perhaps he may needs to separately fill up forms to transfer the money to a specials type of
savings account / fixed deposit account. We are not here for NiAS (Nigerian IAS exam) When RBI

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 18
notifies the system for India, we’ll study. (�ाज कमाने के �लए, शायद उसने अलग से फ़ॉमर् भर के अलग िक़� के बचत
खाते म� सीबीडीसी को �ानांत�रत करना हो ऐसी �व�ा होगी.) #थोड़ा-पढ़ो-आगे-बढ़ो

10.14.4 🐯🐯🐯🐯🐯🐯= ✋🥵🥵Challenges of CBDC

1. Digital Divide, Financial Literacy, Access Points: (िड�जटल उपकरणों क� उपल�ता क� खाई, �व�ीय सा�रता का
भाव, िड�जटल भुगतान इ�ेमाल करने के प�ंच �बंदओ
ु ं क� कमी)
a. Not everyone has electronic gadgets or internet connectivity,
b. Not everyone knows how to operate bank account digitally,
c. Not every village shopkeeper accepts payments in the digital form.
2. Cyber Terrorism/Nuclear Attack/Natural Disaster. If electronic equipment stops functioning →
economy will stop functioning. (साइबर आतं कवाद / परमाणु हमला / प्राकृ �तक आपदा: �वद्युत उपकरण बं द तो
अथर्�व�ा बं द)
3. 2020-Oct: USA's stand: " we don't want to be the 1st to launch the digital currency, rather, we
want to do it error-free. Because there are many risks associated" (इसम� जो�खम ब�त है इस�लए हमको
ज�बाजी म� सबसे पहले इसे लागू करना नहीं है)

10.14.5 🐯🐯🐯🐯🐯🐯� CBDC: Conclusion / �न�षर्

 Considering above charms and challenges, CBDC can ‘supplement’ physical currency BUT
cannot substitute/replace it completely, for India. (िड�जटल मुद्रा, कागजी मुद्रा क� 'पूरक' तो हो सकती है, लेिकन
'स�ूणर् �वक�/एवज' नही)
 Nonetheless, considering the potential benefits, 👜👜👜👜Budget-2022 announced that
Central Bank Digital Currency (CBDC) / Digital Rupee to be issued using Blockchain technology
by RBI - to help in cheaper & efficient currency management system. (हालाँिक िफर भी, इसके लाभ देखते
�ए, बजट 2022 म� सरकार ने घो�षत िकया िक मुद्रा प्रबं धन प्रणाली को स�ी और �ादा प्रभावी बनाने के �लए �रज़वर् ब�क �ॉक-चेन
टे�ोलॉजी का इ�ेमाल करके िड�जटल �पया नाम क� क� द्रीय ब�क िड�जटल मुद्रा जारी करेगी)

10.15 🐯🐯📊📊 DIGITAL PAYMENT RELATED INDEX / COMPETITIONS

10.15.1 🐯🐯📊📊RBI Digital Payments Index (DPI: �ड�जटल भुगतान सूचकांक)

⇒ With 5 component: (i) Payment Enablers (weight: भारांक 25%), (ii) Payment Infrastructure –
Demand-side factors (10%), (iii) Payment Infrastructure – Supply-side factors (15%), (iv)
Payment Performance (45%) and (v) Consumer Centricity (5%). (✋WEIGHT NOT IMP4IAS
but for RBI-Officer-EXAM)
⇒ Report will be published 4-4 months. (हर चार महीने पर प्रका�शत होगा ये �रपोटर्)
⇒ Base Year 2018, then annual growth measured in Digitisation of payments then → backward
areas will be found → RBI will give more attention to those areas. (आधार वषर् 2018 क� तुलना म�
िड�जटल भुगतान के �व�भ� मानकों म� िकतनी बढ़ोतरी �ई, उस िहसाब से �व�वध इलाकों का �पछड़ापन तय होगा और �रज़वर् ब�क वहाँ
सुधार के �लए �ादा �ान देगी)

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 19
10.15.2 18.17.6 🐯🐯🐯🐯 RBI’s Financial Inclusion Index (�व�ीय समावेशन सूचकांक)
⇒ 2021: RBI Governor announced to publish Financial Inclusion Index to capture the extent of
financial inclusion across the country in Banking, Investments, Insurance, Pension Sector.
⇒ Index has 3 broad parameters (weights indicated in brackets) viz., Ease of Access (35%), Usage of
services & their availability (45%), and Quality of services (20%)
⇒ Score of 0% = complete financial exclusion and 100% = full financial inclusion of every eligible
person. For 2021 the All India score is 54%. (यिद जवाब १००% आये तो सभी लोगो का अ�े ढंग से �व�ीय
समोवशन हो गया है, लेिकन अभी अपना �ोर ५४% ही है)
⇒ FI-Index has been constructed without any ‘base year’ (e.g. unlike Consumer price index where
we use base year 2012. REF: Pillar4C for more.) कोई आधार वषर् के सामने तुलना नहीं हो रही, जैसा क� महगांई
सूचकांक म� होता है.

10.15.3 🐯🐯🏆🏆Harbinger Hackathon 2021

- RBI’s first-ever hackathon competition for digital payments systems.

10.16.1 🔠🔠 Mock question for Prelims

Q. Find correct statement(s) about RBI’s reforms in RTGS: (भारतीय �रज़वर् ब�क द्वारा आरटीजीएस के स�भर् म�
िकये गए सुधारों के बारे म� सही कथन खोज�)

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 20
 1. It can be used for transferring any amount of money between Rs 1 to Rs 100 crore ( इसका
उपयोग 1 �पये से 100 करोड़ �पये के बीच िकसी भी रा�श को भेजने के �लए िकया जा सकता है)
2. RTGS is available on 24/7 basis on all days. (आरटीजीएस सभी िदनों म� 24/7 पर उपल� है)
3. From 1/4/2022 RTGS will be merged with NEFT (आरटीजीएस का एनईएफटी म� �वलय हो जाएगा)
Answer Codes: a) Only 1 and 2 b) Only 1 and 3 c) Only 2 d) All three statements

Q. Which are examples of non-fungible items (�न��ल�खत म� से कौन गेर-फ़नजीबल व�ुओ ं के उदाहरण ह�)
1. Precious Metals (क�मती धातु) 2) Diamonds (हीरे)
3. Digital Music Files (िड�जटल सं गीत फ़ाइल�)
4. Currency Notes of a country (िकसी देश के मुद्रा नोट)
Codes: a) only 1 and 3 b) only 2 and 3 c) only 1 and 2 and 3 d) Only 4

Q. Find correct statement(s) about RBI's centralised payment systems. (आरबीआई क� क� द्रीकृ त भुगतान
प्रणाली के बारे म� सही कथन खोज�)
1. It consists of RTGS, NEFT and IMPS. (इसम� RTGS NEFT और IMPS शा�मल ह�)
2. RBI has permitted the Prepaid Payment Instrument to access centralised payment systems
directly. (आरबीआई ने प्रीपेड भुगतान साधन को सीधे क� द्रीकृ त भुगतान प्रणाली तक प�ंचने क� अनुम�त दी है)
Answer Codes: a) Only 1 b) Only 2 c) Both 1 and 2 d) None of the above

Q. Which of the following is the 1st country to launch CBDC in the world?
A) El-Salvador B) Bahamas C) Nigeria D) Singapore
Bitcoins

Q. Which of the following organization publishes Digital Payments Index and Financial Inclusion
Index in India? A) NITI Aayog B) Dept of Financial Services C) RBI D) Bank Board Bureau

10.16.2 �🎷🎷🎷🎷1⃣✋ Mock question for Mains/ESSAY

1. (GSM1-2021) What is Cryptocurrency? How does it affect global society? Has it been affecting
Indian society also? (Answer in 250 words) िक्र�ोकर�सी �ा है ? वै��क समाज को यह कै से प्रभा�वत करती है ? �ा
यह भारतीय समाज को भी प्रभा�वत कर रही है ?
2. (Mock-GSM2) E-rupi increases the efficacy of Direct-Benefit Transfer by making the entitlement
more targeted and leak-proof.” Substantiate/Elucidate. (ई-�पी पात्रता को अ�धक ल��त और �रसाव-मु�
बनाकर प्र��-लाभ अंतरण क� प्रभावका�रता को बढ़ाता है. उदाहरण द्वारा सा�बत क��जए)
3. (Mock-GSM3) Examine critically, the charms and challenges of adopting Central Bank Digital
Currency (CBDC) for Indian monetary system. 250 words. भारतीय मौिद्रक प्रणाली के �लए क� द्रीय ब�क
िड�जटल मुद्रा पहल के आकषर्ण और चुनौ�तयां क� समी�ा क��जए

Next Handout: Win22- Pillar1A2: RBI Monetary Policy, M0-M3, Repo, CRR etc.

Mrunal’s Economy Win22 Series Pillar#1A1: Money- Digital Payment, Crypto, CBDC → Page 21