MPs’ panel to hold discussion with RBI on cryptocurrencies

NEW DELHI: The Parliamentary Standing Committee on Finance is scheduled to hold consultations with officials from the Reserve Bank of India (RBI) on July 2 in the national capital on the future regulatory framework for cryptocurrencies.

According to a notification, the committee will be deliberating on the "oral evidence" of the representatives of the Reserve Bank of India (RBI) on the subject, 'A Study on Virtual Digital Assets (VDAs) and Way Forward'.

After the meeting with RBI officials, the committee will also hold discussions with the Institute of Chartered Accountants of India (ICAI) on various issues related to crypto currency and taxation norms.

Both the Finance Ministry and the RBI have been various cautious in their approach to digital currencies as they carry a high risk of money laundering and even terror financing with the potential of destabilising the economy.

In November 2025, RBI governor Sanjay Malhotra had said, "Stablecoins, cryptos, they have a huge risk, and so we are adopting a very cautious approach towards it."

The standing committee had earlier met various domestic and global crypto exchanges operating in India to understand their concerns and suggestions. On May 20, the panel met crypto exchanges in Delhi to discuss scope of regulations, way ahead for VDA industry and taxation.

Finance Minister Nirmala Sitharaman maintains a pragmatic and cautious approach to cryptocurrencies, categorizing them as taxable assets rather than legal tender.

She has emphasised that cryptocurrencies (or virtual digital assets) are not considered legal currencies, as true currency must be issued by the central bank or government.

In India, cryptocurrencies are classified as Virtual Digital Assets (VDAs) and are subject to strict central taxation rules. The primary regulations include a flat 30 per cent tax on profits, a 1 per cent tax deducted at source (TDS). However, the Finance Minister has made it clear that taxing these trades does not grant them legal status.

FM Sitharaman is of the strong view that regulation cannot be handled by a single country and requires a unified global approach to prevent money laundering, drug trafficking, and terrorist financing.

A senior official pointed out that while the parliamentary standing committee can make recommendations, these are not binding on the Government.