What portion of your salary should you spend on loan EMIs?
Most people buy a house or a car by taking a loan from the bank, but do you know what is the maximum portion of your salary that you should spend on EMI? What is the 40 percent EMI rule? What are the disadvantages of spending more on EMIs? Among home loan, personal loan, auto loan and credit card bills, which loan should you eliminate first?
The cryptocurrency market is growing at an exponential rate in India. It has grown by 641% over the past 12 months, according to a report by Chainalysis. Riding on this huge demand, CoinSwitch Kuber has become the second crypto exchange to join the unicorn club at a valuation of $1.9 billion. Two months ago, Coin DCX also raised about $90 million from investors taking its valuation to $1.1 billion. It was the first crypto exchange to become a unicorn, with a Series C round led by Facebook co-founder Eduardo Saverin’s B Capital.
However, despite rising valuations, extraordinary returns and growing demand, the government has not yet been able to bring usher in crypto regulation in the country. It is a concern as without understanding the volatility and other risks involved, thousands of small investors are getting swayed by their extraordinary returns. For instance, even after the recent crash, Bitcoin and Ethereum have given the return of 87% and 385% since the beginning of this year. Similarly, Shiba Inu, comparatively the new cryptocurrency, has given as high as 350% return in just the past seven days.
With the frenzy among investors given these high returns, there is an urgent need to pass the Cryptocurrency Bill in the country. The process began in February this year when the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 got listed in Parliament. In August, Finance Minister Nirmala Sitharaman also informed that the proposed legislation has got tabled before the cabinet and awaiting its approval.
Clarity is needed due to mixed signals about the status of legality of crypto laws. While FM has said in the past that there won’t be a complete ban, RBI seems to be seeking a complete ban on virtual currencies. Adding to the conundrum, leading cryptocurrency exchanges in their recent consultation with the government has asked for the Securities and Exchange Board of India (SEBI) to regulate the sector, as they are traded more as commodities than use as currencies.
With so many complexities, regulatory hurdles and risks involved, there is a need for the government to pass the Cryptocurrency Bill on a priority basis. It will not only bring transparency but also protect the interest of small investors in the long run.