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RBI Urges Lawmakers to Shield Banks From Crypto Exposure, Backs Containment Strategy

2026-07-03 15:32:12

According to The Economic Times, India's Reserve Bank (RBI) deputy governor Rohit Jain and executive director P. Vasudevan urged lawmakers on Thursday to keep the country's banks and regulated financial institutions insulated from cryptocurrencies and privately issued stablecoins. In a background note to the Parliamentary Standing Committee on Finance, the RBI backed a containment strategy that would bar banks and regulated entities from dealing in crypto while allowing individual trading to remain legal. The central bank said prohibition remains a recognized policy option, citing risks including crypto financing illegal activities and the difficulty of supervising offshore entities. The RBI cautioned that applying traditional financial regulation to crypto could legitimize speculative assets and give users a false sense of safety.

Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

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