There is ongoing resistance to the use of cryptocurrencies in India although the country is experiencing the global influence on the regulation of Digital assets. Recently, the newly appointed Reserve Bank of India (RBI) Governor Sanjay Malhotra reiterated the long-standing reservations of the central bank regarding the threat to the financial stability of the country and monetary policy.
In an interview with CNBC-TV18, Malhotra focused on the payments ecosystem in India. Where users have trusted domestic platforms. Such as UPI, NEFT, and RTGS that are more inclusive and more reliable than a private digital currency.
As per the reports, An Inter-ministerial panel is still reviewing the crypto policy in India, with the RBI being at the center-stage. A written policy statement that explores the economic effects of crypto assets will come out later in the year. The Finance minister, Nirmala Sitharaman, has also taken a reserved position in regard to handling digital assets because they are categorized as cross-border. Her ministry assisted in drafting the IMF-FSB synthesis paper which constituted the foundation of the G20 roadmap to global crypto regulations during India G20 presidency in 2023.
The existing regulations in India are harsh on crypto investors as for now they are forced to pay a 30% tax on crypto profits and no offset option for loss. They also have to take in consideration Tax Deducted at source (TDS) of 1% on every trade which has had several significant impacts especially on the volume of trading in India since 2022.
Rather, India has concentrated on the issue of a Central Bank Digital Currency (CBDC), or a digital rupee. Since late 2022, pilot programs have been used both retail and wholesome.
The notion of exercising restraint in adopting digital payment is backed by the well-developed digital payment infrastructure in India. Up in May 2025, recorded a total volume of more than 18.6 billion transactions, with a volume of 25 trillion Indian rupees, indicating the extensive use of digital payment in India.
On the other hand, Republicans are moving pro-crypto laws in countries such as the U.S. Although global platforms such as Binance and Coinbase have enrolled at the Financial Intelligence Unit (FIU) in India, they have not obtained an overall regulatory green light yet. The message sent by India stands firm.
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