RBI Governor Maintains Firm Stand on Crypto Regulations

India's central bank continues to resist cryptocurrency adoption despite global regulatory trends. Reserve Bank of India Governor Sanjay Malhotra emphasized concerns about digital assets threatening financial stability during a CNBC-TV18 interview. The RBI maintains preference for domestic payment systems like UPI over private cryptocurrencies.

An inter-ministerial panel is currently reviewing India's crypto policy, with RBI playing a central role. A comprehensive policy document assessing crypto's economic impact is expected later this year. Finance Minister Nirmala Sitharaman has taken a cautious approach, having contributed to the IMF-FSB synthesis paper that shaped G20's global crypto framework during India's presidency.

Current Indian regulations impose harsh conditions on crypto investors, including a flat 30% tax on profits without loss offset provisions and mandatory TDS deductions. This restrictive environment persists despite growing international cryptocurrency adoption.