The Usha Thorat Committee is an advisory committee formed on July 10, 2020. The namesake for this Committee is Usha Thorat. She had served as the former deputy governor of RBI (Reserve Bank of India). The primary purpose of this Committee is to advise a capital market regulator. Based on the Committee’s report, measures to simplify the mutual funds’ regulations are decided. The Committee’s leader, Usha Thorat, had previously recommended the initiative for the RBI to be more financially inclusive towards non-residents.
Knowing about RBI will help IAS Exam aspirants deal with other topics related to UPSC Indian Economy. This article will hence provide details about RBI and its functioning.
The Indian Economy is one of the challenging subjects in the Civil Services Examination for many candidates. We bring you the following articles to drive your preparation in the right direction:
|
The formation of the Committee
Usha Thorat is considered one of the primary figures in the Central Banking of India due to her stance on promoting financial inclusion. According to her more recent recommendation about the offshore rupee markets, she suggested that non-residents should receive more options. The reason behind her such suggestion was quite prominent and appropriate.
She mentioned that with the inclusion of non-residents, they could be allowed wider access to the trading platform FX-Retail. This would mean a great incentive for them to use the onshore market. This is the central objective of the Usha Thorat Committee, and based on this principle, it began its operations.
IAS and other government exam aspirants must refer to the List of Committees & Their Purposes at the linked article.
The Usha Thorat Committee Report
The Committee’s leader, Usha Thorat, is also an independent director at the board of directors and board committees under SANOFI. But the most relevant she garners in the financial sector of India is serving as the Chairperson of SEBI or the Securities and Exchange Board of India. Therefore, while studying about the Committee, candidates are also required to learn about the connection of the Committee to SEBI as part of their Usha Thorat committee UPSC preparation.
SEBI is the primary regulating body of securities and commodity markets in India. The Usha Thorat Committee, on the other hand, advises capital market regulators on matters which concern mutual funds. Thus, Usha Thorat serving as the chairperson at SEBI and the operation of the Committee, are interrelated. The SEBI fulfills security and exchange responsibilities at three fronts- the quasi-judicial, the quasi-legislative and the executive. So, in order for it to work effectively, committees are involved. Usha Thorat Committee is one among them.
Suggestions of the Committee
Here are some of the major points which the Committee’s leader, Usha Thorat, had suggested:
- To offer non-deliverable rupee derivatives to get an edge over the dominance of the offshore non-deliverable forward market.
- To permit trading only upon the exchanges since it offers inherent transparency and risk management benefits.
- To consider the implementation of OTC contracts at later stages in order to get a clearer understanding of trading on exchanges.
- To bring volume to Indian shores as opposed to offshore markets such as Singapore, Hong Kong and such for better dissemination of information.
- To discourage local banks from resorting to offshore markets and not going for full rupee convertibility.
These are what the Committee is trying to achieve with its current operations. Under the leadership of Usha Thorat, it is highly effective in providing advice to regulators like the SEBI.
Candidates preparing for UPSC 2022 should also keep a track of the latest current affairs to know about any new developments in the country.
Other Related Links:
Comments