Back to Markets
Crypto▼ Bearish
RBI Wants Banks to Avoid Crypto, Ban Still on Table
RBI told a parliamentary panel it wants banks to avoid crypto, with a ban still possible. India's 30% tax and FIU OTC reporting tighten oversight without an outright prohibition.
Continue with
India’s central bank told a parliamentary committee it wants banks to stay clear of cryptocurrency transactions and private stablecoins. A ban on some crypto activities remains an option, the Reserve Bank of India said.
Deputy Governor Rohit Jain and Executive Director P. Vasudevan appeared before the Standing Committee on Finance on June 2. Jain said crypto should not be used for payments and that banks should not facilitate crypto-related business. Treating crypto like other financial products could create a false sense of safety, the RBI warned.
The RBI’s containment approach seeks to wall crypto off from the regulated banking system while allowing tokenized assets such as government securities and corporate bonds to develop. The central bank does not oppose blockchain technology itself, it told the committee. The stance echoes its earlier push to keep crypto out of the banking system India's Central Bank Wants Crypto Out of the Banking System.