Monday September 24, 2018
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Telangana CM urges Jaitley to hike cap on borrowings

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New Delhi/Hyderabad: Telangana Chief Minister K. Chandrasekhar Rao on Tuesday met Union Finance Minister Arun Jaitley in New Delhi and urged him to hike the cap prescribed by Fiscal Responsibility and Budget Management (FRBM) Act for raising loans.

The chief minister also discussed the issues of the central government’s help for the state’s development and allocation of funds under various central schemes.

Jaitley told reporters after the meeting that the chief minister made certain suggestions with regard to raising resources for the state and methodologies for the same.

“He wants the FRBM’s limit for the state to be raised. He gave documents in support of that. Expenditure department will consider the feasibility,” Jaitley said.

KCR, as the chief minister is popularly called, said the central government should relax the FRBM norms and allow the state to borrow loans up to 3.49 percent of Gross State Domestic Product (SSDP) against the existing limit of less than 2.7 percent.

The state’s representative in the national capital Venugopala Chary said KCR reiterated the requests made earlier.

KCR also sought the central government’s help for drought relief and more allocation of funds for Mission Kakatiya and Jalaharam, the flagship programmes of the state government for development of irrigation and drinking water supply.

The chief minister also called for more funds for the development of backward districts of the state.

KCR later in the day will attend a meeting of the sub-committee of Niti Aayog (National Institution for Transforming India) on devolution of funds to states and centrally sponsored schemes.

KCR had earlier urged Niti Aayog to relax the FRBM norms so that the state could borrow more loans for taking up development schemes.

He is of the view the FRBM guidelines for raising resources through borrowings for revenue surplus states should be on a par with the central government.

The chief minister said such a relaxation would enable the newly-created states to invest in capital infrastructure to improve the economic growth.

(IANS)

 

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Is investing in Bitcoin safe? Get the basics first!

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India has not legitimized bitcoin, hence investment returns are totally based on demand i.e. you get your return only if there is another buyer in the market who is ready to pay you more for it. Currently the high-value of the digital currency owes to its high demand, but once people start selling, there is a possibility that rates will drastically fall. Pixabay
India has not legitimized bitcoin, hence investment returns are totally based on demand i.e. you get your return only if there is another buyer in the market who is ready to pay you more for it. Currently the high-value of the digital currency owes to its high demand, but once people start selling, there is a possibility that rates will drastically fall. Pixabay

With the fussy mania of Bitcoin going around and past, your eyes and ears, in the news and peer discussions, you must be having some basic questions about it: What is bitcoin? Is it legal? How can I get it? But most of all, you must be thinking, ‘Is investing in Bitcoin safe?’

Let’s find out!

Pluto Exchange has launched first app that will trade in bitcoins in India
Pluto Exchange has launched the first app that will trade in bitcoins in India. Wikimedia commons

ALSO READ: Bitcoin Worth Millions Stolen Days Before US Exchange Opens

Clearing the basics

  • Bitcoin is the first ever cryptocurrency that existed, it was invented in 2009 by Satoshi Nakamoto.
  • Cryptocurrencies are nothing but computer codes that have monetary value. No Government has any control over them.
  • Bitcoins ‘self-contain’ their value i.e. there’s no need for any bank to move or store the money.
  • Bitcoin currency is completely unregulated and decentralized.
  • Bitcoins are mined, and they can be mined by anyone in the general public who has a strong computer. However, only 21 billion of bitcoins in total can be mined. Currently, there are around 11 million in circulation.
  • Bitcoin has no underlying physical monetary base to support its value, and it is totally subject to its demand in the market.

What are the risks?

  • Low demand: India has not legitimized bitcoin, hence investment returns are totally based on demand i.e. you get your return only if there is another buyer in the market who is ready to pay you more for it. Currently, the high-value of the digital currency owes to its high demand, but once people start selling, there is a possibility that rates will drastically fall.
  • Unregulated: There is no bank or government tax agency that can track your money and its movement. Hence, it can become a tool for money laundering.
  • Irreversible transactions: There is no insurance protection of your bitcoin wallet i.e. if you lose your wallet’s hard drive data or even your password, your wallet’s content is gone forever.
There is no insurance protection of your bitcoin wallet i.e. if you lose your wallet’s hard drive data or even your password, your wallet’s content is gone forever. Pixabay
There is no insurance protection of your bitcoin wallet i.e. if you lose your wallet’s hard drive data or even your password, your wallet’s content is gone forever. Pixabay

ALSO READ: How can you trade in Bitcoin in India?

Status of Bitcoin in India

Finance minister Arun Jaitley highlighted in a statement that cryptocurrencies are not legal tender and have no regulatory permission or protection in the country.

However, there was no announcement banning or imposing any curbs on the same. The government panel is also awaiting a report on tackling cryptocurrencies in India, Jaitley said.

The government has recently cautioned investors to be wary of virtual currencies like bitcoin, saying they are like Ponzi schemes with no legal tender and protection.

“One of the features of cryptocurrency is that there is lack of dependence on the state. It functions with a degree of anonymity. It operates within a virtual community which is created and enjoys the trust of that virtual community,” Finance Minister Arun Jaitley told the Rajya Sabha.

“The government is examining the matter. A Committee under the chairmanship of the Economic Affairs Department Secretary is deliberating over all issues related to cryptocurrencies to propose specific actions to be taken… Instead of taking any knee-jerk action, let’s wait for the report of this committee.” Jaitley added