India’s Parliamentary Standing Committee on Finance, chaired by Bhartruhari Mahtab, held its 7th meeting on virtual digital assets (VDAs) today with representatives from the Reserve Bank of India (RBI) and the Institute of Chartered Accountants of India (ICAI). This marked RBI’s first testimony before the panel on crypto-related issues.
RBI Firmly Opposes Crypto Legal Status In India
India’s Parliamentary Standing Committee on Finance held its 7th meeting on VDAs, consulting from RBI and ICAI representatives. Chairman Mahtab stated that the RBI did not recommend giving legal status to cryptocurrencies in India.
Meanwhile, this latest meeting forms part of the committee’s broader study titled “A Study on Virtual Digital Assets (VDAs) and Way Forward.” The meeting also follows the committee’s earlier sessions with prominent exchanges like Binance, WazirX and ZebPay.
Why RBI Maintains Its Longstanding Cautious Stance on Crypto
RBI’s firm opposition to granting legal status to cryptocurrencies since 2013 is rooted in longstanding concerns over financial stability, monetary sovereignty, and the assets’ inherent risks.
RBI views private cryptos as lacking intrinsic value, with no issuer or enforceable payment promise. RBI Deputy Governor T. Rabi Sankar has described cryptocurrencies as “just a piece of code” lacking the fundamental attributes of money. RBI also argues that even pegged stablecoins carry the risk of de-pegging, runs, and digital dollarization, which can lead to a reduction in demand for the rupee, thereby impacting monetary policy.
Instead of embracing private cryptos, the RBI actively promotes its sovereign Central Bank Digital Currency (CBDC), the e-Rupee (e₹). It is an efficient, legal tender, alternative that facilitates payments, financial inclusion, and cross-border activities, such as potential BRICS interlinks, while preserving RBI’s oversight.
Broader Impact on India’s Crypto Policy Outlook
India’s crypto policy in 2026 is advancing with extreme caution as the Parliamentary Standing Committee on Finance formally weighs the RBI’s strong opposition to granting legal status for cryptocurrencies. Leading global adoption statistics with more than 119 million users, authorities are focusing on refinements to the 30% VDA tax and 1% TDS, as well as stricter FIU-IND compliance, rather than full legalization or comprehensive regulation.
For the crypto sector, this means continued regulatory uncertainty, increased compliance expenses, and restricted banking options for crypto-related services. However, the absence of an outright ban allows trading to continue, supporting India’s strong retail adoption. Global exchanges could be subjected to tougher localization requirements, while domestic innovation could shift toward blockchain applications operating under RBI oversight or CBDC infrastructure.
Looking ahead, India’s policymakers are closely monitoring international frameworks such as the US GENIUS Act and the EU MiCA framework. However, domestic priorities such as monetary sovereignty, financial stability, and preserving the rupee’s dominance, take precedence.
Related: India Finance Panel to Meet Binance, WazirX, and ZebPay Over Crypto Rules
