Budget 2021: Bills to be proposed for strengthening infrastructure and digital currency

The government will establish National Bank for Financing Infrastructure and Development (NaBFID) to the infrastructure financing requirements of the country. The National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 will be brought up in the Budget session to set it up as a developmental financial institution or DFI.

The government will also propose The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 to account for an official digital currency.

“To set up a new DFI as a provider, enabler and catalyst for infrastructure financing,” the NaBFID Bill 2021 purpose of statement recorded, continuing to say that NaBFID will be the, “principal financial institution and development bank for building and sustaining a supportive ecosystem across the life cycle of infrastructure projects.”

The Economic Survey postponed on 29th January, 2021 has also noted that investment in infrastructure is crucial and necessary for more rapid and inclusive economic growth. The strong backward-forward linkages of the infrastructure sector are founded well. The National Infrastructure Pipeline (NIP) project expects expenditure of Rs 111 lakh crore between FY20 and FY25 on infrastructure creation across various sectors.

The government will present the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 which suggests to create a facilitative structure for generation 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 exemptions to promote the underlying technology of cryptocurrency and its uses,” its purpose of statement quoted.

During the beginning of this month, RBI was exploring the likelihood as to whether there is a need for a digital version of fiat currency and, if there is, how to begin it’s functioning. Last year in March, the Supreme Court had overturned a ban by central bank on the use of bank channels for payments attributed to cryptocurrency.

The government will also introduce The Pension Fund Regulatory and Development Authority (Amendment) Bill 2021 for ensuring universal pension coverage as well as strengthening PFRDA. The bill purpose of statement read, “To amend the PFRDA Act to fulfill the Budget Announcement 2019 regarding the separation of NPS Trust from PFRDA.”
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