With reference to cross border remittances in India, consider the following statements:
1. Reliability on Society for Worldwide Interbank Financial Telecommunications (SWIFT) and wire transfers which are slow and costly.
2. Adaptation to initiatives like Blockchain and Central Bank Digital Currency (CBDC) can enhance speed and prove cost efficient.
3. E- Rupee is a key project aimed at real-time settlement of cross-border transactions.

Which of the following statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Question

With reference to cross border remittances in India, consider the following statements:
1. Reliability on Society for Worldwide Interbank Financial Telecommunications (SWIFT) and wire transfers which are slow and costly.
2. Adaptation to initiatives like Blockchain and Central Bank Digital Currency (CBDC) can enhance speed and prove cost efficient.
3. E- Rupee is a key project aimed at real-time settlement of cross-border transactions.

Which of the following statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

ONLiNE UPSC · Accepted Answer

Statement 1 is correct: Infrastructure-wise, India relies heavily on traditional systems like Society for Worldwide Interbank Financial Telecommunications (SWIFT) and wire transfers, which are slow and costly. To stay competitive, India must adopt newer technologies.

Statement 2 is correct: Blockchain and Central Bank Digital Currency (CBDC) initiatives also hold potential for enhancing speed, security, and cost in cross-border payments.

Statement 3 is correct: India&rsquo;s CBDC, eRupee, is another key project aimed at real-time settlement of cross-border transactions. By reducing reliance on intermediaries, eRupee could lower transaction costs and improve security. However, this will require interoperability between central banks across jurisdictions, which poses its own challenges.

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With reference to cross border remittances in India, consider the following statements: 1. Reliability on Society for Worldwide Interbank Financial Telecommunications (SWIFT) and wire transfers which are slow and costly. 2. Adaptation to initiatives like Blockchain and Central Bank Digital Currency (CBDC) can enhance speed and prove cost efficient. 3. E- Rupee is a key project aimed at real-time settlement of cross-border transactions. Which of the following statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3