RBI Opposes Legalizing Crypto Assets in Parliamentary Finance Review

The Reserve Bank of India (RBI) told the Parliamentary Standing Committee on Finance on July 2, 2026, that virtual digital assets (VDAs) should not be legalized in India. RBI Governor Sanjay Malhotra and other representatives argued that cryptocurrencies pose a threat to the emerging economy and could facilitate transnational crimes, including terrorism financing and narcotics smuggling. The central bank also highlighted the difficulty of regulating offshore trade entities and noted that the digital rupee is not flourishing as effectively as privately issued digital assets.

During the review meetings in New Delhi, the parliamentary committee, led by Chairman Bhartruhari Mahtab, also consulted the Institute of Chartered Accountants of India (ICAI). In contrast to the RBI's stance, the ICAI advocated for a comprehensive VDA law, stating that these assets offer strategic opportunities for India. The professional body offered to develop research and guidance on the recognition, measurement, and disclosure of digital assets in financial statements to improve compliance and reporting frameworks.

The proceedings aimed to establish a regulatory roadmap for VDAs, balancing the RBI's warnings regarding financial stability and money laundering against the ICAI's call for a structured legal framework for auditing and taxation.