The Reserve Bank of India (RBI) is closely tracking international developments in the cryptocurrency space, governor Sanjay Malhotra informed a parliamentary panel, an Economic Times report said on Friday. The resurgence of crypto, fueled by US President Donald Trump’s shift from a sceptic to a supporter, has drawn global attention. Trump’s own involvement in the sector and the US government’s move to establish a bitcoin reserve and introduce pro-crypto legislation have added momentum.
Citing sources, the ET report also said India is expected to release a policy paper on crypto soon, after receiving approval from the highest levels of the government. Malhotra described the document as a “work in progress” during his interaction with lawmakers. Another person present said the governor highlighted that India may not require cryptocurrencies given the effective functioning of the Unified Payments Interface (UPI) for domestic digital transactions.
Malhotra made the remarks while appearing before the parliamentary standing committee on finance, chaired by BJP MP Bhartruhari Mahtab. He was briefing members on the topic: ‘RBI’s evolving role in India’s dynamic economy.’ The central bank has consistently expressed reservations about cryptocurrencies, citing their potential misuse for money laundering and terror financing.
“As you are aware, we are concerned about crypto because that can hamper financial stability and monetary policy,” Malhotra had said earlier on June 6 while briefing the media on the outcomes of the Monetary Policy Committee meeting. Meanwhile, the RBI is working on its own Central Bank Digital Currency (CBDC), positioning it as a safer alternative to private virtual assets.
Although India imposes a 30% tax on profits from virtual digital assets, it does not legally recognise them. Additionally, all crypto exchanges operating in the country are required to register with the Financial Intelligence Unit.
During its presentation to the committee, the RBI also noted that India is on track to remain the fastest-growing major economy in FY26 but warned of downside risks from global market volatility.
In line with this outlook, S&P Global Ratings recently revised its forecast for India’s GDP growth in FY26 to 6.5%, up from 6.3%, citing factors such as a normal monsoon, income-tax concessions among other things.
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