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What is Digital Rupee?

The Central Bank Digital Currency (CBDC) can be defined as the legal tender issued by the Reserve Bank of India, according to the concept note. Touted as Digital Rupee or e-Rupee, RBI's CBDC is the same as a sovereign currency and is exchangeable one-to-one at par with the fiat currency, the regulator mentioned

According to the RBI press release dated November 29, 2022, here some important points to know about digital Rupee (e₹-R) pilot:

The pilot would cover select locations in closed user group (CUG) comprising participating customers and merchants.

The e-Rupee would be in the form of a digital token that represents legal tender. It would be issued in the same denominations that paper currency and coins are currently issued. It would be distributed through intermediaries, i.e., banks.

Users will be able to transact with e₹-R through a digital wallet offered by the participating banks and stored on mobile phones / devices.

Transactions can be both Person to Person (P2P) and Person to Merchant (P2M). Payments to merchants can be made using QR codes displayed at merchant locations.

 The e₹-R would offer features of physical cash like trust, safety and settlement finality.

As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks.

 The pilot will assess the stability of the complete creation, distribution, and retail use of digital rupees in real time. Based on the lessons learned from this pilot, other aspects and uses of the e-R token and architecture will be evaluated in further pilots.

Few pros and cos

1.t is new era of currency. 2.reduces maintenance cost of currency

3. Most of the currency will become transperent in system. Mean to say elimination of Block money. 

4. Reduces the settlement risk. 

5. Txn cost will be minimal or eliminated. 

6. We may easily participate in world markets. 

Cons

1.users must be technology obedient otherwise fear of hacke

2. As we bankers if manual transactions reduced job cuttings we may face at Low level. And advantage at higher end jobs at cyber security and all. 

Conclusion: whenever we adopt new technology or new development s in economy few losses we need to sacrifice. Hence it is good and appreciable initiative by our RBI.

BRIEXIT

Daniel Gros, Director of the Center for European Policy Studies, says the cost to Britain of leaving the EU will not be high. But Berkeley’s Barry Eichengreen says the bill is sure to mount.                                    

 TURKEY

Turkey’s Justice and Development Party, led by President Recep Tayyip Erdoğan, rose to power in 2002 on the promise that it would ensure religious freedom for pious Muslims. Fourteen years later, “freedom” is the last thing the party has delivered.

ARMS LENGTH PRICE

In an arm's length transaction is a [transaction in which the buyers and sellers of a product act independently and have no relationship to each other. The concept of an arm's length transaction allows the market to ensure that both parties in the deal are acting in their own self-interest and are not subject to any pressure or duress from the other party. It also assures third parties that there is no collusion between the buyer and seller.

Arm's Length Transactions and Real Estate

When determining the fair market value of a piece of property, the price for the property must be obtained through a potential buyer and seller operating through an arm's length transaction. Otherwise, the agreed-upon price is likely to differ from the actual fair market value of the property.

For example, if two strangers are involved in the sale and purchase of a house, it is likely that the final agreed-upon price is close to market value, assuming that both parties have equal bargaining power and equal information about the situation. The seller would want a price that is as high as possible, and the buyer would want a price that is as low as possible.

Take another example, a father and his son would yield the same result, because the father may choose to give his son a discount.

Whether the parties are dealing at arm's length in a real estate transaction has a direct impact on financing by a bank of the transaction, stamp duty, or other municipal or local taxes, as well as the use of the transaction to set comparable prices in the market.

Using the same example as above, if the sale of the house between father and son is taxable, tax authorities may well force the seller to pay taxes on the gain he would have realized had he been selling to a neutral third party and disregard the actual price paid by the son.

In the same way, international sales between non-arm's length companies, such as two subsidiaries of the same parent company, must be made for arm's length prices. This practice, known as transfer pricing, ensures that each country collects the appropriate taxes on the transactions.

RE SALE PRICE

XYZ CO, based in Hong Kong, MANUFACTURES a special cool drink of mango. It sells this cool drink to high-end customers around Asia through ABC co. The market price for one can of “the cool drink” is Rs 100. XYZ co does not sell this to independent distributors. Also, there is no company in Asia that this cool drink.

However, there are comparable distributors who sell the cool drink and CLEAR JUICE is one such. CLEAR JUICE  is also based in Hong Kong. The brand name is FRUITO. The market price for one bottle of FRUITO is Rs 100. In addition, distributors report Rs 5 gross margin per bottle sold with Rs.2 on custom duties.

the gross margin and custom duties reported can be used as input for the Resale Price Method.

This would look as follows:

In this example, when using the Resale Price Method, company needs to charge a transfer price of  Rs.93 to its associated distributors.

SR. NO. EXAMINATION EXAM DATE/ SCHEDULE 

Registration start and End Date JAIIB 1 JAIIB/DB&F/SOB-

09-Nov-2021 to 15-Nov-2021 Normal fees 

16-Nov-2021 to 22-Nov-2021 Normal fees + Rs.100/-

 23-Nov-2021 to 29-Nov-2021 Normal fees + Rs.200/-

Practices of Banking 08-01-2022

Accounting & Finance for Bankers 09-01-2022 3 

Legal & Regulatory Aspects of Banking 22-01-2022 CAIIB 1 

CAIIB-Advanced Bank Management 30-01-2022

 01-Dec-2021 to 07-Dec-2021 Normal fees 

08-Dec-2021 to 14-Dec-2021 Normal fees + Rs.100/- 

15-Dec-2021 to 21-Dec-2021 Normal fees + Rs.200/- 

2 CAIIB-Bank 

CAIIB-Advanced Bank Management 30-01-2022

Financial Management 06-02-2022 3 CAIIB/CAIIB 

ELEC-Rural Banking 12-02-2022 4 CAIIB/CAIIB ELEC-Retail Banking 12-02-2022 5 CAIIB/CAIIB ELEC-Human Resources Management 12-02-2022 6 CAIIB/CAIIB ELEC-Information Technology 12-02-2022 7

CAIIB/CAIIB ELEC-Risk Management 12-02-2022 8 

CAIIB/CAIIB ELEC-Central Banking 12-02-2022 Note: Candidates are advised to visit Institute's Website regularly 

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