AUTHORS, PUBLISHERS, AND DATA RETENTION: A LEGAL STUDY UNDER INDIA’S DIGITAL PERSONAL DATA PROTECTION ACT
AUTHORS, PUBLISHERS, AND DATA RETENTION: A LEGAL STUDY UNDER INDIA’S DIGITAL PERSONAL DATA PROTECTION ACT Introduction In today’s digital world, personal data has become one of the most valuable and also vulnerable assets for businesses, governments, and online platforms. Every interaction conducted through digital systems generates information that can identify individuals, including names, addresses, financial records, identity documents, and communication details. As India’s digital economy continues to expand rapidly, concerns relating to privacy, misuse of information, unauthorized access, and data security have become increasingly important. To address these concerns, India enacted the Digital Personal Data Protection Act, 2023 (DPDP Act). The legislation establishes a legal framework governing the collection, storage, use, processing, and deletion of personal data. Its objective is to protect the privacy rights of individuals while also enabling lawful and responsible data processing for business and governance purposes. The law has particular significance for professionals working in creative industries, especially authors and writers, who routinely share personal information, unpublished manuscripts, research materials, and confidential communications with publishers and digital platforms. What Is Personal Data? Personal data refers to any information that can identify an individual either directly or indirectly. Under the DPDP Act, this includes information such as: Names Mobile numbers Email addresses Aadhaar details Financial and banking information Location data Identity documents The Act applies primarily to digital personal data processed within India. It may also apply to organizations located outside India if they offer goods or services to individuals in India. As digital communication and cloud storage become central to business operations, the protection of personal information has become a critical legal and ethical responsibility. Key Principles of India’s Data Protection Law The DPDP Act is built upon several foundational principles intended to ensure responsible data governance. Consent-Based Processing Organizations must obtain clear and informed consent before collecting or processing personal data. Consent should be free, specific, informed, and capable of being withdrawn easily by the individual. This principle ensures that individuals retain meaningful control over how their personal information is used. Purpose Limitation Personal data may only be used for the purpose for which it was originally collected. Organizations cannot repurpose data for unrelated activities without obtaining fresh authorization. For example, if a publisher collects an author’s banking information for royalty payments, that information cannot later be used for unrelated marketing activities without consent. Data Minimization The law discourages excessive collection of information. Organizations should collect only the data necessary for a legitimate purpose. Data Security Entities handling personal information are required to implement reasonable safeguards to prevent unauthorized access, data breaches, leaks, or misuse. Data Erasure Personal data must be deleted once the purpose for which it was collected has been fulfilled or when consent has been withdrawn, unless another law requires its retention. Rights of Individuals Under the DPDP Act The DPDP Act grants several important rights to individuals, often referred to as “Data Principals.” These rights include: The right to access information regarding their personal data The right to correct inaccurate or outdated information The right to request erasure of personal data The right to grievance redressal The right to nominate another […]
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The Silent Crisis in Legal Practice: When Clients Succeed but Lawyers Remain Unpaid
The Silent Crisis in Legal Practice: When Clients Succeed but Lawyers Remain Unpaid For many advocates, the deepest professional frustration is not losing a case. It is succeeding for a client and still remaining unpaid. Across years of practice, many lawyers experience the same pattern repeatedly: urgent consultations, endless conferences, strategic drafting, court appearances, emotional pressure, favorable outcomes, and then delayed, reduced, or completely denied professional fees. This problem becomes more painful in matters involving “success-linked” fee understandings. During the crisis stage, clients make assurances freely. Once relief is obtained — settlement, injunction, bail, recovery, business advantage, or litigation success — the financial commitment often becomes negotiable in the client’s mind. The result is not only financial loss. It creates professional exhaustion and distrust within practice. The Real Issue Is Structural In many cases, the problem is not merely dishonesty by individual clients. It is the absence of professional billing structure. Traditional relationship-based practice often relies on: verbal fee discussions, informal understandings, post-result payments, unlimited access to the lawyer, and emotional trust instead of documented systems. Such models place disproportionate risk on the advocate. The lawyer invests: time, intellectual effort, strategy, office resources, staff coordination, and professional reputation, while payment remains uncertain until the very end. Why This Pattern Damages Legal Practice Over time, repeated unpaid work creates: burnout, resentment toward clients, unstable cash flow, inability to scale chambers, reduced professional boundaries, and loss of motivation despite competence. Many capable lawyers become financially strained not because they lack legal skill, but because they lack enforceable economic structure within practice management. The Need for Professional Financial Discipline Modern legal practice requires systems, not assumptions. Advocates increasingly need: * written engagement terms, * stage-wise billing, * advance retainers, * consultation fees, * documented payment schedules, * and clear pause rights for non-payment. Equally important is client selection. Clients who: * resist written fee clarity, * negotiate excessively, * avoid advances, * or continuously postpone payment discussions often become future collection problems. Success Fees Should Not Be Survival Fees A major mistake in practice economics is depending on future “success fees” as the primary compensation. A healthier structure is: * proper professional fees during the matter, * with any success-linked component treated only as additional upside. This protects the advocate from total economic loss even if the client later defaults. Professionalism Must Continue Even During Recovery Non-payment should never push advocates toward public confrontation, emotional communication, or unethical pressure tactics. Fee recovery efforts should remain: * Documented, * Dignified, * Neutral, * And professionally managed. Long-term reputation is more valuable than short-term anger. A major lacuna in the existing legal framework is the absence of a statutory mechanism securing payment of professional fees to advocates. While the Advocates Act, 1961 emphasizes professional ethics and duties toward clients, it does not adequately protect advocates from non-payment of legitimate fees after rendering legal services. Need for an Advocates’ Security of Fees Act The present legal framework under the Advocates Act, 1961 does not provide an effective statutory mechanism for securing payment of professional fees to advocates. Although advocates are ethically prohibited from abandoning clients unfairly […]
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International Law and the Vulnerabilities of the Global Market
The foundational promise of postwar international economic law was straightforward: establish a rules-based order, and predictable markets would generate shared global prosperity. For decades, multilateral institutions—anchored by the World Trade Organization (WTO), the International Monetary Fund (IMF), and an expansive network of Bilateral Investment Treaties (BITs)—functioned as stabilizing mechanisms for global capital and cross-border trade. Yet the contemporary world economy is increasingly defined not by seamless integration, but by structural fragmentation, geopolitical rivalry, volatile supply chains, and re-surging economic nationalism. As global markets become more vulnerable to political shocks and strategic competition, international legal frameworks are struggling to adapt. Rather than operating as neutral arbiters of trade and investment, these institutions are increasingly transformed into arenas of geopolitical contestation. Geopolitical Power and the Global Economy The global economy is often portrayed as a system governed primarily by trade law, market liberalization, and international cooperation. In practice, however, power politics continues to shape economic outcomes far more profoundly than legal idealism frequently acknowledges. Economic sanctions, military interventions, control over strategic resources, and dominance over global financial infrastructure have become central instruments of international influence. One of the clearest examples is the structural dominance of the United States within the dollar-based global financial system. Since a significant portion of international trade, energy transactions, and sovereign reserves are denominated in U.S. dollars, Washington possesses extraordinary leverage over the global economy. States perceived as challenging American strategic interests can face sanctions, restrictions on banking access, limitations on dollar settlements, and exclusion from critical financial networks. This financial centrality extends American influence far beyond conventional territorial boundaries. India itself experienced the coercive dimension of economic policy following the 1998 Pokhran nuclear tests, when the United States imposed sanctions under its non-proliferation framework. Although India ultimately absorbed these pressures and later developed stronger strategic relations with the United States, the episode illustrated how economic instruments can be mobilized to discipline sovereign states. Similarly, Iran has endured decades of comprehensive sanctions affecting its banking sector, oil exports, trade networks, and broader economic stability. The Iranian case demonstrates how sanctions can evolve from temporary diplomatic measures into long-term geopolitical instruments aimed at strategic containment. Energy politics further intensifies these tensions. Oil-rich regions frequently become focal points of international intervention, proxy conflicts, and political destabilization. Critics argue that major powers often seek to influence resource-rich states either directly through military intervention or indirectly through regime pressure, economic dependency, and geopolitical alignment. At the same time, recent developments indicate that American financial dominance is no longer entirely uncontested. China, Russia, India, and several BRICS members have increasingly explored alternatives to dollar-centric trade mechanisms through local currency settlements, regional payment systems, and efforts toward financial multipolarity. Although the dollar remains dominant, these developments reflect growing dissatisfaction with the concentration of monetary power within a single state. The Iranian experience also reveals the limitations of conventional coercive power. Despite decades of sanctions and diplomatic isolation, Iran has retained significant regional influence and strategic resilience. This underscores the broader reality that modern geopolitical conflicts cannot be resolved solely through economic pressure or military superiority. Consequently, the modern global economy cannot be understood exclusively […]
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Committees Are Not Courts: Bombay High Court Draws the Line
STOP PLAYING JUDGE: HOUSING SOCIETIES CANNOT DECIDE TITLE An interesting case came up before the Bombay High Court, where aforesaid issue was argued and decided. Facts of the case are as under: The dispute concerns ownership of Flat No. 31 in a Malad housing society in Mumbai. The flat was purchased around 1969–70 by Ramlal Dhanuka using his own funds but was registered jointly in his name and Pannadevi (wife of his son D. R. Dhanuka). Ramlal had three sons—D. R. Dhanuka, K. R. Dhanuka, and Radheshyam Dhanuka (Respondent No. 4)—who later occupied different flats bought by him. After Ramlal and his wife died in 1989, the sons became legal heirs. In 2007, Pannadevi filed a suit claiming exclusive ownership of the disputed flat and denying any rights of Radheshyam. She died in 2008, and her legal heirs continued the case. Meanwhile, an order was passed restraining the housing society from transferring or dealing with the flat’s membership rights until the suit is decided. Core issue: Whether the flat belongs exclusively to Pannadevi or forms part of the family property. Now let us see the arguments of the Petitioner: the Society argued that Respondent No. 4 wrongly applied for transfer of membership instead of transmission after the member’s death and failed to follow mandatory procedures under Bye-Law 35, including public notice and verification of legal heirs, while also submitting an incomplete application. It also argued that there are disputes among heirs; society further contended that the Divisional Joint Registrar lacked jurisdiction to hear a revision against the Deputy Registrar’s order, but the Court rejected this, holding that cooperative societies only perform limited administrative roles (not deciding ownership, as noted in Usha Jhaveri vs State of Maharashtra) and that revisional authority remains valid despite delegation of powers, thereby upholding the legality of such review. Respondent member argued that: After the earlier suit concerning the flat was unconditionally withdrawn in 2012, clearing disputes over title, Respondent No. 4 applied for membership as a legal heir, but the society failed to decide his application, leading him to seek deemed membership and later file a revision; he argued that the society had effectively recognized him by accepting maintenance charges and that minor defects in the application form should not defeat his substantive claim of succession, while also relying on lack of opposition from key family members, whereas the petitioners contended that multiple heirs existed and the application was invalid due to incorrect form and procedure; the Court, however, emphasized that substance prevails over form, held that the application was essentially for transmission based on inheritance despite technical errors, found that the alleged disputes among heirs were not strong enough to justify inaction, and rejected the jurisdictional objection, thereby supporting the validity of the revisional proceedings and Respondent No. 4’s claim being considered. It was held by the Bombay High Court that: the dispute before the society was not about ownership/title, but merely about recognition of membership after the death of a member, making it an issue of internal administration rather than adjudication of property rights. It emphasized that Section 30 of the Maharashtra Cooperative […]
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“Can Sons Restrain a Mother from Transferring Property? A Legal Analysis under Hindu Law”
CAN SONS FILE SUIT AGAINST MOTHER (HINDU) FOR STAY AGAINST TRANSFER OF SHARES / PROPERTY HELD BY MOTHER IN A FAMILY PROPERTY/ PRIVATE COMPANY ABSOLUTELY TO DAUGHTER? Hindu law prohibits dowry. But dowry is given in one form or another. Hindu Law after 2004 amendment gave equal right to married daughter in father’s property. View of Author Equal property rights for married daughters are an important step toward fairness and gender equality. However, in some families this can also create tensions in relationships. After marriage, daughters may be influenced by their husband or in-laws, and when disputes over property arise, disagreements can escalate into legal battles or serious family conflicts. While the intention behind laws like the Hindu Succession (Amendment) Act, 2005 is to ensure justice and equal rights, the practical implementation sometimes leads to strained family ties when expectations about property are unclear or contested. In such situations, disagreements over inheritance may even end up in court or cause long-lasting rifts within families. Therefore, along with legal equality, maintaining open communication, clear property planning, and mutual understanding within families is important to prevent conflicts and preserve relationships. Law makers must prevent this situation resulting into strained relationships. Broken relations makes society psychologically weaker. Continue… with article… Let us see Section 14 of the Hindu Succession Act 1956. Property of a female Hindu to be her absolute property.―(1)Any property possessed by a female Hindu, whether acquired before or after the commencement of this Act, shall be held by her as full owner thereof and not as a limited owner. Explanation.―In this sub-section, “property” includes both movable and immovable property acquired by a female Hindu by inheritance or devise, or at a partition, or in lieu of maintenance or arrears of maintenance, or by gift from any person, whether a relative or not, before, at or after her marriage, or by her own skill or exertion, or by purchase or by prescription, or in any other manner whatsoever, and also any such property held by her as stridhana immediately before the commencement of this Act. (2) Nothing contained in sub-section (1) shall apply to any property acquired by way of gift or under a will or any other instrument or under a decree or order of a civil court or under an award where the terms of the gift, will or other instrument or the decree, order or award prescribe a restricted estate in such property. If the shares are the mother’s self-acquired property (bought by her or gifted to her), she has absolute authority to transfer them to anyone she wishes, and the sons have no legal standing to stop her during her lifetime. Section 5 of the said Act provides for exception: Act not to apply to certain properties. ―This Act shall not apply to― (i) any property succession to which is regulated by the Indian Succession Act, 1925 ( 39 of 1925), by reason of the provisions contained in section 21 of the Special Marriage Act, 1954 (43 of 1954); (ii) any estate which descends to a single heir by the terms of any covenant or agreement entered […]
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“No Privilege in the Machine: A Case Study in AI-Assisted Defense”
AI DOCUMENTS ARE PRIVILEGED DOCUMENTS? ARE AI‑GENERATED LEGAL DOCUMENTS PRIVILEGED? A COMPARATIVE LEGAL PERSPECTIVE To understand the nuances of the issue under discussion we must know the provisions of the Indian laws. The two main laws applicable during evidence and cross examination oof a witness are the Bharatiya Sakshya Adhiniyam (BSA), 2023, and Code of Civil Procedure 1908. Prior to Bharatiya Sakshya Adhiniyam (BSA), 2023, it was The Evidence Act 1872. Professional Communications (Section 126-128, Evidence Act): Attorneys, pleaders, and their employees cannot disclose any communication made by a client, or documents shared, in the course of professional employment without the client’s express consent. Confidentiality Requirement: Privilege only applies to communications made to seek legal advice; it does not protect advice sought for illegal purposes. Client Protection (Section 129, Evidence Act): Clients cannot be compelled to disclose confidential communications with their legal advisors. Spousal Privilege (Section 122, Evidence Act): Communications between husband and wife during marriage are protected, with exceptions like suits between them. Official Communications (Sections 123-124, Evidence Act): Public officers cannot be compelled to disclose communications made in official confidence if it harms public interest. CPC Application: Under the Code of Civil Procedure, if a party is asked to produce a document that is privileged under the Evidence Act, they can object to its production. If a document loses its confidentiality, the privilege is lost. The Query: So, a question arises when a document is drafted by an Artificial Intelligence Application, whether such document or a draft is a privileged document and exempted from cross examination? Now issue arose before a Court in USA. United States v. Heppner in which said that when documents prepared by an AI application same is not a privileged document? If we talk of India, there is no law. However, a warning is issued by the Supreme Court of India not to rely on AI. It was an incident where a lawyer cited Judgements during his arguments, were never passed by any court of law in India. Factual Background On November 4, 2025, Bradley Heppner was arrested on the charges of securities and wire fraud. Pursuant to a search warrant, federal agents searched his residence and seized electronic devices. A forensic review revealed approximately thirty-one documents generated through Heppner’s interactions with “Claude,” a generative AI system operated by an application called Anthropic. The documents contained AI-generated analyses addressing potential defences, legal theories, and litigation strategy related to Heppner’s criminal case. After receiving a grand jury subpoena and retaining counsel, Heppner continued to use Claude independently to analyse the charges, evaluate defences, and draft strategy memoranda. He saved the AI-generated materials on his personal devices and later shared them with his attorneys. During discovery disputes, defence counsel conceded that they neither directed nor supervised Heppner’s use of the AI system and had no role in creating the documents. The government moved to compel production, arguing that the materials were not privileged because they were created through communications with a third-party AI platform without attorney involvement. Judge Jed Rakoff of the U.S. District Court for the Southern District of New York granted the motion, holding […]
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The Jungle, the Fairy, and the Ballot Box
“The Fairy and the Freebie: How Easy Comfort Weakens a Nation” As soon as Election comes every political party starts disbursing money to the voters. Some offer monthly Rs.70,000/- some offer. The taxpayer is a mute spectator. I will tell you story of a Jungle. The Story of the Jungle Once upon a time, there was a beautiful jungle where all the animals lived peacefully. They worked hard to find their food by hunting and gathering. They shared with one another and cared for each other. The jungle was full of love, cooperation, and happiness. All the animals helped one another and took responsibility for their lives. They were strong, active, and independent. One day, a fairy came to the jungle. She had a magic wand. By waving her wand, she started giving food and water to all the animals and birds. At first, everyone was happy. But slowly, the animals became lazy. Since food was easily available, they stopped working and hunting. They spent most of their time sleeping and eating. Over time, they even found it difficult to walk and run because they were no longer active. After a few months, a hunter entered the jungle. He began hunting the animals recklessly. Earlier, the animals were brave and skilled at escaping or fighting back. But now, because they were weak and lazy, many of them were easily caught in traps. Many animals were hunted. Fear spread throughout the jungle. The King of the Jungle called a meeting. All the animals gathered and discussed what had gone wrong. They realized that the fairy had been sent by the hunter to make them weak and dependent. Because of her magic, they had lost their strength and alertness. They decided to send the fairy away from the jungle. After the fairy was deported, the animals slowly returned to their old habits. They started working hard again, hunting, sharing, and taking care of one another. Soon, the jungle became peaceful and happy once more. Moral of the Story Easy comfort can make us weak. Hard work and self-reliance make us strong. ____________________________________________________________ Freebies and Constitution The legality of election “freebies” in India hinges on balancing Directive Principles (social welfare) with fiscal responsibility under the Constitution. While critics argue they constitute bribery and misuse public funds (violating Art. 266, 282), the Supreme Court in The S. Subramaniam Balaji v. Government of Tamil Nadu (2013) case is a landmark Supreme Court of India judgment regarding electoral freebies. The Court ruled that pre-poll promises in election manifestos do not constitute a “corrupt practice” under Section 123 of the Representation of People Act, 1951, as they are part of a party’s agenda, not individual bribery. The judgment established a distinction between election promises for public welfare and the direct bribery of voters. However, it has been criticized for failing to curb the growing culture of “freebie politics” that threatens state finances. Latest View of Supreme Court: TAMIL NADU POWER DISTRIBUTION CORPORATION LIMITED Vs UNION OF INDIA | W.P.(C) No. 158/2026 Currently the view of Supreme Court has changed its view. In the above matter CJI Suryakant said […]
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“RERA in India: Repeal or Reform?
SHOULD RERA BE REPEALED? Why we are discussing this topic? The Supreme Court in THE STATE OF HIMACHAL PRADESH vs. NARESH SHARMA| SLP(C) No. 005835 – / 2026 CJI Surya Kant said It is high time that all the states should revisit and rethink constituting this authority,” The CJI further remarked that the RERA was not doing any other services except to facilitate builders in default. Let’s study pros and Cons. RERA is useful and effective: The Real Estate (Regulation and Development) Act, 2016 (RERA) brings accountability, transparency, and efficiency to the Indian real estate sector, primarily protecting homebuyers. Key benefits include mandatory project registration, standardized carpet area definitions, 70% of funds kept in an escrow account to prevent diversion, guaranteed timely delivery, and a 5-year defect liability period. Major Positive Points of RERA: Transparency and Disclosure: Promoters must disclose project plans, layout, land title status, and timeline on the RERA website, giving buyers access to verified information. Protection of Funds: Developers are required to deposit 70% of all project funds into a dedicated bank account, ensuring money is only used for that specific project, reducing insolvency risk. Standardized Carpet Area: RERA eliminates confusion by defining “carpet area” clearly, ensuring buyers pay only for the actual usable space, not for common areas or super built-up areas. Builders were selling units/galas/flats even on Super Built Up basis. Timely Delivery and Penalties: Projects must be completed on time. If a developer delays possession, they are liable to pay interest on the amount paid by the buyer, matching the interest rate for buyer default. Defect Liability Period: Builders are responsible for rectifying any structural defects or quality issues reported within 5 years of possession at no extra cost. Reduced Fraud and Misleading Ads: All advertising must adhere to the registered project details. False promises or misleading marketing can lead to penalties. Redressal Mechanism: RERA authorities provide a fast-track, organized, and legal mechanism for settling disputes between buyers, developers, and agents. Consent for Changes: Developers cannot change plans or structure without the consent of two-thirds of the homebuyers. Concluding Notes: RERA has significantly improved buyer confidence, increased project efficiency, and bYes—**before the introduction of RERA in India**, this kind of malpractice was unfortunately quite common in the real estate sector. ROLE OF REAL ESTATE REGULATORY AUTHORITY (INDIA) Before RERA came into force (around 2016–2017), there was no strong centralized regulator, which allowed many builders to exploit buyers. What Used to Happen Before RERA Blank or Incomplete Agreements Builders often made buyers sign blank or partially filled agreements Later, terms were changed without the buyer’s consent. Buyers had little legal protection. Multiple Sales of the Same Flat. Blank document was signed and genuine buyer in possession was not aware of the same. Some builders sold **one flat to 5–10 people** using: Duplicate allotment letters Fake agreements Backdated documents Especially common when buyers paid in cash or instalments. Mix of Investors and Loan Buyers: Builder was taking loans from investors in cash against blank agreement. Such funds were cash. Investors were given early “soft bookings” without registration. Genuine buyers took bank loans […]
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India’s Emerging AI Hub
Vizag: India’s Emerging Metro City of Opportunity Narendra Modi, the Prime Minister of India, recently inaugurated the world’s largest AI Impact Summit, attended by global leaders in artificial intelligence and advanced technologies. The summit highlighted India’s growing leadership in AI, semiconductors, and high-performance computing. Among India’s rising technology hubs, Visakhapatnam (Vizag) is rapidly transforming into a global center for artificial intelligence and data infrastructure. 🌐 Vizag’s Transformation into a Global Data City Located in Andhra Pradesh, Vizag is emerging as one of the world’s largest AI data center hubs, driven by an estimated $15 billion investment from Google and other major industry leaders. This ambitious “Data City” initiative aims to build more than 2.5 GW+ of digital infrastructure capacity, positioning Vizag as a cornerstone of India’s digital economy. 🔹 Key Partners and Investments Google Developing its largest AI data center outside the United States in Vizag. AdaniConnex A joint venture between Adani Enterprises and EdgeConneX, focused on creating a 1GW+ AI-driven data center ecosystem. Reliance–BrookfieldPlatform A collaboration between Reliance Industries and Brookfield Asset Management, contributing to large-scale infrastructure development. 📍 Location and Scope Project Area: Madhurawada–Kapuluppada corridor Land Area: ~500 acres Purpose: Dedicated technology and data center cluster This region is being developed as a future-ready digital and innovation zone. ⚡ Capacity, Timeline, and Vision Target Capacity: 2.5 GW+ Implementation Period: 2026–2030 Goal: Establish Vizag as a leading global AI and cloud computing hub The initiative will significantly strengthen India’s digital sovereignty and computing capabilities. 🌱 Advanced Features Integration of renewable and green energy systems Subsea cable landing stations for global connectivity High-performance AI and machine learning infrastructure Smart grid and cooling technologies These features ensure sustainability and global competitiveness. 👩💼 Economic and Employment Impact Creation of thousands of direct and indirect jobs Growth in IT services, construction, logistics, and support industries Boost to local entrepreneurship and skill development Increased foreign direct investment Vizag is set to become a major employment and innovation hub for the region. 🌍 Global Competitiveness With these developments, Vizag is positioning itself to compete with established global data center clusters such as Northern Virginia, one of the world’s largest digital infrastructure hubs. 🚀 Conclusion The Vizag Data City initiative represents a landmark step in India’s journey toward technological leadership. Backed by global corporations, strong government support, and sustainable infrastructure, Visakhapatnam is poised to become: Shruti Desai 17th February 2026
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From Demonetisation to Digital Currency: How India Led the Global Shift Toward Sovereign Digital Money
From Demonetisation to Digital Currency: How India Led the Global Shift Toward Sovereign Digital Money India is a visionary nation. India had a serious problem of terrorism and funding terrorism through fake currency notes. India, to abate terrorism, opted for demonetisation on 8th November 2016. India introduced digital payment platforms simultaneously. We now have Bharat Pay, G Pay and even every bank has started their UPI. India has shown the world the path towards a digital world. Now, the west side of the globe is following India’s footsteps. USA PASSES LAW OF REGULATORY FRAMEWORK OF DIGITAL CURRENCY: The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into law in July 2025, establishes the first comprehensive federal regulatory framework for payment stablecoins in the United States. It mandates 100% reserve backing, strict, liquidity requirements, and brings issuers under Bank Secrecy Act (BSA) compliance. Key Aspects of the GENIUS Act (2025-2026): Purpose: To foster innovation in digital assets while protecting consumers and ensuring financial stability. Reserve Requirements: Requires stablecoins to be backed 1:1 by high-quality, liquid assets, such as U.S. dollars or short-term Treasury bills. Issuer Regulation: Only permitted issuers can create payment stablecoins; they must adhere to capital and risk management rules. Consumer Protection: Guarantees redemption rights for stablecoin holders and mandates public disclosures of reserves. Compliance: Subjects issuers to anti-money laundering (AML), countering the financing of terrorism (CFT), and sanction requirements. International Scope: Foreign issuers targeting U.S. users are held to the same standards as domestic issuers. The Treasury Department is actively implementing the law, with public comment periods regarding the regulation of these digital assets extending into late 2025 Overview of U.S. Monetary Evolution The U.S. monetary system has undergone major changes, including: Early issuance of private bank and Treasury currencies. Creation of the Federal Reserve in 1914 as the sole currency issuer. Abandonment of gold and silver convertibility after 1933. These shifts were controversial decisions and actions but are now widely accepted. Emergence of Digital Currencies and CBDC Debate Private digital currencies (e.g., Bitcoin) and foreign CBDCs have prompted U.S. policy debates. A Central Bank Digital Currency (CBDC) is the digital form of a nation’s sovereign currency, issued and regulated by the central bank (e.g., RBI’s “Digital Rupee” or e₹). It acts as legal tender, is interchangeable 1:1 with physical cash, and is designed to make transactions faster, cheaper, and more secure. Key Aspects of CBDCs: Types: Divided into Retail (CBDC-R) for public use and Wholesale (CBDC-W) for interbank settlements. Storage: Held in digital wallets provided by banks, offering 24/7 transactions. Global Status: Over 130 countries, representing 98% of global GDP, are exploring or have launched CBDCs, driven by the need for enhanced digital payment efficiency. Digital Currency Vs. Crypto: Unlike cryptocurrencies, CBDCs are centralised, backed by the state, and not volatile. Goals: Reduce cash-handling costs, improve financial inclusion, and increase cross-border payment efficiency. Key questions include: Whether the Federal Reserve should issue a CBDC. Whether a CBDC would fundamentally change the financial system or simply modernise it. USA Congress has held several hearings and proposed multiple CBDC-related bills in recent sessions. Purpose of the […]
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