{"id":24046,"date":"2026-10-04T18:19:02","date_gmt":"2026-10-04T18:19:02","guid":{"rendered":"https:\/\/cryptoted.net\/index.php\/2026\/10\/04\/indias-rbi-stays-cautious-on-crypto-backs-tokenization\/"},"modified":"2026-10-04T18:19:02","modified_gmt":"2026-10-04T18:19:02","slug":"indias-rbi-stays-cautious-on-crypto-backs-tokenization","status":"publish","type":"post","link":"https:\/\/cryptoted.net\/index.php\/2026\/10\/04\/indias-rbi-stays-cautious-on-crypto-backs-tokenization\/","title":{"rendered":"India\u2019s RBI stays cautious on crypto, backs tokenization"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/media.crypto.news\/2025\/10\/crypto-news-Indias-crypto-investors-say-tax-laws-are-unfair-option01.webp\" \/><\/p>\n<div>\n<p class=\"is-style-lead\">India\u2019s central bank has renewed its cautious position on cryptocurrencies while continuing to support tokenization, distributed ledgers and central bank digital currency projects.<\/p>\n<div id=\"cn-block-summary-block_051ab3af50237948e66df003b69d3557\" class=\"cn-block-summary\">\n<p>\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/p>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>RBI Governor Sanjay Malhotra said India remains cautious on crypto while supporting tokenization and DLT.<\/li>\n<li>Malhotra cited monetary sovereignty, monetary policy, capital flows and singleness of money as key concerns.<\/li>\n<li>RBI is testing tokenized corporate bonds, certificates of deposit and programmable digital rupee settlement systems.<\/li>\n<li>India\u2019s FIU issued notices to 15 crypto platforms in September for violating anti-money-laundering compliance requirements.<\/li>\n<li>India has not enacted a comprehensive crypto law while tax and AML rules remain active.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>RBI Governor Sanjay Malhotra <a href=\"https:\/\/www.business-standard.com\/economy\/news\/rbi-backs-blockchain-technology-remains-cautious-on-crypto-guv-malhotra-126100300396_1.html?utm_source=chatgpt.com\" target=\"_blank\">said<\/a> at the Kautilya Economic Conclave in New Delhi on Oct. 3 that India remained cautious toward crypto because of risks involving monetary sovereignty, monetary policy and capital flows.<\/p>\n<p>\u201cSo, our approach has been to promote the underlying technologies,\u201d Malhotra said, referring to distributed ledger technology and tokenization. He added that the central bank was using some of the technology internally and through public-private partnerships, while its approach to crypto remained \u201ccautious.\u201d<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\"><strong>RBI sees risks in private crypto money<\/strong><\/h2>\n<p>Malhotra identified the \u201csingleness of money\u201d as one concern surrounding private digital assets. The principle refers to different forms of money denominated in the same currency maintaining the same value and remaining interchangeable.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">BREAKING: \ud83c\uddee\ud83c\uddf3 India remains cautious on cryptocurrencies while promoting underlying technologies like DLT and tokenization.<\/p>\n<p>\u2013 RBI Governor Sanjay Malhotra <a href=\"https:\/\/t.co\/p2hNl6YpHz\">pic.twitter.com\/p2hNl6YpHz<\/a><\/p>\n<p>\u2014 Crypto India (@CryptooIndia) <a href=\"https:\/\/x.com\/CryptooIndia\/status\/2106425762341605578?ref_src=twsrc%5Etfw\">October 3, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Crypto assets and privately issued currencies could create problems for that system if their value, backing or settlement structure differs from sovereign money, according to the governor. Malhotra tied the concern to monetary policy and capital-flow management, particularly in emerging economies where authorities maintain controls on cross-border capital movements.<\/p>\n<p>During his prepared address, the RBI governor <a href=\"https:\/\/rbi.org.in\/scripts\/BS_SpeechesView.aspx?Id=1582&amp;utm_source=chatgpt.com\" target=\"_blank\">said<\/a> financial innovation should preserve settlement finality, financial integrity and the \u201csingleness of money.\u201d The speech specifically listed tokenization and artificial intelligence among technologies that can improve financial efficiency when used within those safeguards.<\/p>\n<p>Malhotra questioned the argument that private cryptocurrencies are needed to improve domestic payments. India already has fast and low-cost domestic payment infrastructure, he said, leaving cross-border payments as the more difficult problem.<\/p>\n<p>Central bank digital currencies and links between regulated payment systems could provide another route for international transfers, according to Malhotra. His comments follow the <a href=\"https:\/\/crypto.news\/rbi-calls-for-banking-restrictions-on-crypto-and-private-stablecoins\/?utm_source=chatgpt.com\" target=\"_blank\">RBI\u2019s reported push to keep banks away from private crypto and stablecoins<\/a> while allowing regulated tokenized financial assets to develop separately.<\/p>\n<p>Internal government documents reported in July indicated that the central bank continued to favor a policy direction \u201cleaning toward prohibition.\u201d RBI officials had reportedly recommended insulating regulated banks and financial institutions from holdings, trading and other exposure to cryptocurrencies and privately issued stablecoins.<\/p>\n<p>No comprehensive prohibition has been enacted as of Oct. 4. Crypto trading continues in India under existing tax, anti-money-laundering and reporting rules, while the government has not introduced a dedicated law covering the entire digital asset market.<\/p>\n<h2 class=\"wp-block-heading\"><strong>RBI is moving ahead with regulated tokenization<\/strong><\/h2>\n<p>The central bank\u2019s position toward tokenization has moved in a different direction from its treatment of private cryptocurrencies.<\/p>\n<p>At the Global Fintech Festival in September, Malhotra <a href=\"https:\/\/www.bis.org\/speeches\/20260921-shaping-next-decade-finance-technology-trust-and-innovation?utm_source=chatgpt.com\" target=\"_blank\">outlined<\/a> RBI projects involving programmable CBDCs, tokenized certificates of deposit and corporate bonds settled through the wholesale digital rupee.<\/p>\n<p>RBI said tokenized certificates of deposit issued through its Unified Markets Interface were being used to study how financial markets could operate with digital settlement infrastructure. The central bank and Securities and Exchange Board of India then moved into corporate bonds, connecting tokenized securities with wholesale CBDC settlement.<\/p>\n<p>SEBI <a href=\"https:\/\/www.sebi.gov.in\/sebiweb\/home\/HomeAction.do?doListing=yes&amp;sid=6&amp;smid=0&amp;ssid=23&amp;utm_source=chatgpt.com\" target=\"_blank\">announced<\/a> the successful launch of its Demat 2.0 pilot for tokenized corporate bonds on Sept. 10. The pilot uses distributed ledger infrastructure for securities records while settling the cash side of transactions through central bank money.<\/p>\n<p>In related coverage, <a href=\"https:\/\/crypto.news\/india-launches-digital-rupee-settlement-for-bonds\/?utm_source=chatgpt.com\" target=\"_blank\">India\u2019s first digital-rupee-settled tokenized bond transactions<\/a> involved \u20b91,025 crore across three issuances. REC raised \u20b9500 crore, Larsen &amp; Toubro issued another \u20b9500 crore, and IIFL completed a \u20b925 crore transaction.<\/p>\n<p>The bonds remain conventional regulated securities with normal contractual rights, interest terms and repayment obligations. Tokenization changes how ownership and settlement are recorded; it does not turn the instruments into cryptocurrencies.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Digital rupee use is expanding beyond bond settlement<\/strong><\/h2>\n<p>The RBI has continued building its digital rupee program while raising concerns about privately issued currencies.<\/p>\n<p>In August, the Indian government <a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2298531&amp;lang=1&amp;reg=3&amp;utm_source=chatgpt.com\" target=\"_blank\">announced<\/a> a CBDC-based direct benefit transfer program for Chandigarh and Dadra and Nagar Haveli under the Pradhan Mantri Garib Kalyan Anna Yojana. The program was scheduled to begin Aug. 14 using the digital rupee for government benefits.<\/p>\n<p>Malhotra said in September that programmable CBDC pilots were exploring targeted government transfers and other use cases. The RBI\u2019s retail digital rupee retains the legal status of sovereign currency and can be converted into bank deposits, according to central bank material.<\/p>\n<p>Cross-border settlement has emerged as another area under examination. In September, <a href=\"https:\/\/crypto.news\/india-russia-discuss-cbdc-payments-as-bilateral-trade-nears-60-billion\/?utm_source=chatgpt.com\" target=\"_blank\">India and Russia began discussing CBDC-based trade settlement infrastructure<\/a> as their central banks explored links between sovereign digital currencies.<\/p>\n<p>India\u2019s existing payment infrastructure has expanded overseas as well. Government data published in July showed UPI operating across multiple foreign markets, including Singapore, France, the UAE, Nepal and Mauritius, with newer payment links added in 2026.<\/p>\n<h2 class=\"wp-block-heading\"><strong>India keeps tightening crypto compliance<\/strong><\/h2>\n<p>India\u2019s cautious policy has not stopped authorities from regulating crypto businesses through anti-money-laundering law.<\/p>\n<p>Virtual digital asset service providers have been covered by the Prevention of Money Laundering Act since March 2023. Platforms serving Indian customers must register with the Financial Intelligence Unit-India as reporting entities, even when the company has no physical office in the country.<\/p>\n<p>The framework requires reporting, record keeping and other AML obligations. Government notices continue to warn that crypto assets and NFTs remain unregulated as investment products and may offer no regulatory remedy for losses.<\/p>\n<p>Tax law continues to recognize virtual digital assets. India\u2019s Income Tax Act, 2025, which took effect April 1, 2026, explicitly defines VDAs including cryptocurrencies and tokenized assets.<\/p>\n<p>Compliance enforcement intensified again in September. FIU-IND <a href=\"https:\/\/www.pib.gov.in\/PressReleseDetailm.aspx?PRID=2308131&amp;lang=1&amp;reg=3&amp;utm_source=chatgpt.com\" target=\"_blank\">issued<\/a> notices to 15 virtual asset providers, including Weex, Blofin, DigiFinex, WOO X, WhiteBIT and ChangeNow, for operating without meeting registration requirements.<\/p>\n<p>The <a href=\"https:\/\/crypto.news\/india-targets-weex-blofin-woo-x-and-12-other-crypto-platforms\/?utm_source=chatgpt.com\" target=\"_blank\">latest enforcement action against 15 offshore crypto platforms<\/a> included requests to take down applications and URLs accessible to Indian users. FIU-IND said its obligations apply according to the services offered in India and do not depend on whether a provider maintains a local physical presence.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><br \/>\n<br \/><a href=\"https:\/\/crypto.news\/indias-rbi-stays-cautious-on-crypto\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s central bank has renewed its cautious position on cryptocurrencies while continuing to support tokenization, distributed ledgers and central bank digital currency projects. Summary RBI Governor Sanjay Malhotra said India remains cautious on crypto while supporting tokenization and DLT. Malhotra cited monetary sovereignty, monetary policy, capital flows and singleness of money as key concerns. RBI [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":24047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[23],"tags":[],"kronos_expire_date":[],"class_list":["post-24046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"_links":{"self":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/24046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/comments?post=24046"}],"version-history":[{"count":0,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/24046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media\/24047"}],"wp:attachment":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media?parent=24046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/categories?post=24046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/tags?post=24046"},{"taxonomy":"kronos_expire_date","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/kronos_expire_date?post=24046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}