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- Why in News?
- The Ministry of Finance has launched the Foreign Currency Settlement System (FCSS) at GIFT International Financial Services Centre (IFSC), positioning it among premier global financial hubs like Hong Kong and Tokyo that possess local foreign currency settlement infrastructure.
- Key Provisions:-
- FCSS, authorised by the International Financial Services Centres Authority (IFSCA) under the Payment and Settlement Systems Act, 2007, enables local settlement of foreign currency transactions between IFSC Banking Units (IBUs), eliminating dependence on the traditional correspondent banking route. Initially supporting US Dollar transactions, it plans to expand to other currencies later. The system, operated by CCIL IFSC Ltd, a subsidiary of the Clearing Corporation of India Ltd, allows real-time or near real-time settlements, significantly reducing the 36–48 hour settlement window.
- GIFT City, India’s first operational smart city, houses the country’s only IFSC regulated by IFSCA (established in 2020), which promotes and regulates cross-border financial services within a competitive global framework.
- Why in News?
- The Reserve Bank of India (RBI) has expanded the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 to include Central and State Co-operative Banks, ensuring wider access to a unified grievance redress mechanism. This decision has been made under Section 35A of the Banking Regulation Act, 1949.
- Key Provisions:-
- The RB-IOS 2021 aims to provide customers of regulated entities with a speedy, cost-effective, and transparent alternative for grievance resolution. Earlier, it covered Commercial Banks, Regional Rural Banks, Scheduled and Non-Scheduled Urban Co-operative Banks (with deposits over ₹50 crore), eligible NBFCs, System Participants, and Credit Information Companies.
- By merging three previous frameworks—the Banking Ombudsman Scheme (2006), NBFC Ombudsman Scheme (2018), and Digital Transactions Ombudsman Scheme (2019)—the RB-IOS adopts a “One Nation, One Ombudsman” model, removing jurisdictional barriers. The Ombudsman can award compensation of up to ₹20 lakh, and an additional ₹1 lakh for mental distress or expenses incurred by complainants.
- Why in News?
- The 7th Moscow Format meeting witnessed a significant development as Taliban representatives participated as formal delegates for the first time, marking a notable shift in regional engagement with Afghanistan’s de facto authorities.
- Key Provisions:-
- The Moscow Format was established in 2017 as a regional consultation mechanism aimed at promoting peace, stability, and national reconciliation in Afghanistan, which has long faced political and humanitarian challenges. The platform provides an avenue for neighbouring and regional powers to coordinate efforts for a peaceful resolution to the Afghan crisis and to prevent the spread of terrorism and drug trafficking in the region.
- Its members include India, Afghanistan, China, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan. The inclusion of Taliban officials in the latest round highlights growing recognition among regional stakeholders of the need for pragmatic engagement to ensure long-term security, humanitarian relief, and inclusive governance in Afghanistan.