RBI to Launch Digital Rupee on Pilot Basis (Economy, the Indian Express) , UGC Issues Guidelines for Professor of Practice (Education, the Hindu) (October 2022)

The Reserve Bank of India has decided to soon launch Digital Rupee on pilot basis for limited use. Creating awareness about CBDCs in general and the planned features of the Digital Rupee is the purpose behind issuing the concept note. A concept note was released on the Central Bank Digital Currency (CBDC) . The note further seeks to explain the approach of Reserve Bank towards introducing the CBDC.

The concept note further discusses key considerations such as technology and design choices, issuance mechanisms, possible uses of Digital Rupee, etc. It also examines the CBDC՚s introduction implications on the banking system, monetary policy, financial stability, and analyses privacy issues.

Payment Trends in 2021

Payment trends in 2021

About

  • With the expansion of the extent and scope of such pilot launches, RBI from time to time will continue to communicate about the specific features and benefits of e ₹ .
  • Earlier in 2022, the finance minister in her 2022 - 23 budget speech had announced the launch of the Digital Rupee, a digital currency backed by the central bank.
  • The announcement further expressed government՚s intention towards cryptocurrencies and other virtual currencies.
  • The RBI in the past had on several occasions flagged concerns with private cryptocurrencies like Bitcoin, Ether, etc. related to:
    • Money laundering
    • Terror financing
    • Tax evasion, etc.

Central Bank Digital Currency (CBDC)

  • Digital tokens like cryptocurrency, issued by the central bank.
  • It is issued and regulated by a nation՚s monetary authority or central bank.
  • They promote financial inclusion and help simplify the implementation of monetary and fiscal policy.
  • The main goal of CBDCs is to provide businesses and consumers with:
    • Privacy
    • Transferability
    • Convenience
    • Accessibility
    • Financial security

Issues Addressed by CBDCs

  • Free from credit and liquidity risk
  • Cross-border payment improvements
  • Financial inclusion
  • Supports the international role of the dollar
  • Expands access to the general public

Types of CBDCs

Wholesale CBDCs

  • Like holding reserves in a central bank.
  • An institution is granted an account to deposit funds or use to settle interbank transfers by the central bank.
  • For influencing leading and set interest rates, central banks can use monetary policy tools like reserve requirements or interest on reserve balances.

Retail CBDCs

  • Government-backed digital currencies used by consumers and businesses.
  • These CBDCs eliminate intermediary risk.
  • Token-based retail CBDCs and Account-based retail CBDC are the two types of retail CBDCs.
  • Token-based retail CBDCs are the ones accessible with private⟋public keys.
  • Account-based retail CBDCs are those that require digital identification for accessing an account.

UGC Issues Guidelines for Professor of Practice

Guidelines for Professor of Practice positions in universities and colleges have been drafted by the University Grants Commission recently. Regarding the rules of engagement, the Commission՚s secretary has written to industry bodies, including FICCI, CII, ASSOCHAM and NASSCOM. Recommendation of transformative reforms in the higher education sector by the “National Education Policy 2020” was also pointed out.

The promotion of holistic and multidisciplinary education is the main thrust of the policy. An important step in the context of holistic and multidisciplinary education is the integration of academic scholarship with practical experience. A new initiative has been taken by the UGC for engaging Professor of Practice in Higher Educational Institutions (HEls) .

Plan for Higher Education Institutes

Types of institutes envisaged

About

  • As per the document, “experts with remarkable contributions in their professions from various fields having proven expertise in their specific profession at a senior level with at least 15 years՚ experience are eligible for Professor of Practice.”
  • A formal academic qualification is not required “if there is exemplary professional practice in lieu.” Also, they would not require to have authored publications.
  • At any point of time in an institution, the number of such professors may not exceed 10% of the sanctioned posts.
  • The faculties may be involved in:
    • Developing and designing courses and curriculum
    • Deliver lectures
    • Mentor students
    • Improve industry-academia collaboration
    • Research projects
    • Conduct with regular faculty members
      • Workshops
      • Seminars
      • Training programs Such persons are to be funded by the industries or by the institution or could be an honorary position.

Nominations

  • Nominations for the post may be invited by the Vice-Chancellor or director of the institution.
  • The recommendations may be offered by a selection committee comprising two senior professors from the institution and an eminent external member.
  • The engagement is to be decided by the institution՚s statutory bodies.

Tenure

  • Professors in practice may get appointed for a year with the subsequent engagement based on assessment.
  • At a given institution, the maximum duration of service of Professor of Practice shouldn՚t exceed three years. The service duration in exceptional cases is extendable by one year. Under any circumstances, the total service should not exceed four years as per the UGC mandate.

Examrace Team at Dec 31, 2022