The cooperative federalism of India is in jeopardy because several state governments have withdrawn their general consent to the CBI.
Money is a universally accepted economic unit that serves as a medium of exchange in an economy, allowing for transactions to occur smoothly. Each government typically has its own monetary system. Functions of Money: Medium of Exchange: Money facilitates transactions between buyers and sellers by acRead more
Money is a universally accepted economic unit that serves as a medium of exchange in an economy, allowing for transactions to occur smoothly. Each government typically has its own monetary system.
Functions of Money:
- Medium of Exchange: Money facilitates transactions between buyers and sellers by acting as an intermediary.
- Unit of Account: It provides a common measure for valuing goods and services.
- Store of Value: Money allows individuals to save wealth for future use, provided its value remains relatively stable. Inflation can erode this value over time.
- Standard of Deferred Payment: Money can be used for future payments, making it a viable option for credit and deferred transactions.
Advantages of Money Over Other Types of Assets:
- Liquidity: Money is the most liquid asset, easily exchanged for goods, services, or other assets. In contrast, assets like real estate, gold, or bonds are not as readily convertible.
- Acceptability: As legal tender, money is universally accepted at any time, unlike barter systems that require a double coincidence of wants.
- Durability: Unlike perishable items, money is durable. While currency notes can wear out, they are far more durable than goods exchanged in barter systems.
- Portability: Money is easy to transport, unlike bulky goods used in barter systems.
- Stability: Compared to volatile assets like cryptocurrencies, money is relatively stable.
- Uniformity: Money is uniform in size, shape, and value, unlike varied goods in a barter system.
- Fungibility: Money is easily interchangeable; for instance, a 20-rupee note can be exchanged for two 10-rupee notes. This isn’t possible with barter items like livestock.
Money’s presence and regulation by central banks are essential indicators of a country’s economic health.
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Answer: The Central Bureau of Investigation (CBI) is the premier investigating police agency in India. It is not only a premier anti-corruption investigative agency but also has experience of handling high profile conventional crimes, economic offences, banking frauds and frauds with international lRead more
Answer: The Central Bureau of Investigation (CBI) is the premier investigating police agency in India. It is not only a premier anti-corruption investigative agency but also has experience of handling high profile conventional crimes, economic offences, banking frauds and frauds with international linkages. The CBI is governed by The Delhi Special Police Establishment Act (DSPE) Act, 1946, and it must mandatorily obtain the consent of the state government concerned before beginning to investigate a crime in a state. The consent of the state government can be case-specific or general. General consent is usually given by states to help the CBI in seamless investigation of cases of corruption against central government employees in their states. This is consent by default, in the absence of which, the CBI would have to apply to the state government, in every case, and before taking even small actions. Traditionally, almost all states have given the CBI general consent. However, currently nine states have withdrawn consent to the CBI on the grounds that the CBI is used for political interests and vendetta. This tussle between the CBI and States has created an impasse as around 150 requests for sanction to investigate by the CBI are pending with such state governments since 2018. The Supreme Court has referred to the situation as ‘undesirable’. It has been argued that this also threatens the spirit of cooperative federalism in India in the following manner:
In 2013, the CBI came under harsh criticism by one of the Supreme Court judges, who referred to it as a “caged parrot” and “its master’s voice” due to political interference in the CBI inquiry on the allocation of coalfield licences. It has been argued that when different political parties form governments at the Center and states, often their interests don’t align and the CBI is used as a political tool in such instances. Therefore, the concerns of states governments also need to be looked into along with ensuring that the CBI conducts all its investigations in a free, fair and impartial manner as per the law. Following steps can be taken in this regard:
This federal impasse is a worrying development. Strong federal agencies are in national interest because big crimes often straddle state and national borders and state agencies may not have resources or jurisdiction to thwart such offenses. Therefore, it would be in India’s interest to protect CBI from political influence and interference.
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