India’s Crypto Policy Paper Faces Delay as RBI Backs Digital Rupee Focus
India’s long-awaited cryptocurrency policy paper is likely to be delayed indefinitely, as the Reserve Bank of India maintains its opposition to private digital assets. Government officials now appear to prefer existing oversight tools, including taxation and anti-money laundering monitoring, instead of moving ahead with a separate framework. Meanwhile, official focus is increasingly shifting toward the Reserve Bank of India’s central bank digital currency, the digital rupee.
BREAKING: 🇮🇳 India’s long-awaited crypto policy paper is likely shelved for now amid RBI resistance.
Government says existing steps like crypto taxes and FIU AML monitoring are enough for now.
RBI remains strongly opposed to crypto/stablecoins, warning of systemic risks; focus…
— Crypto India (@CryptooIndia) April 1, 2026
India’s finance ministry delays crypto policy paper
A discussion paper prepared by the Department of Economic Affairs under the Finance Ministry was expected to outline the government’s position on cryptocurrencies in India. Since 2023, an inter-ministerial group led by the finance ministry has been working on the paper, which was expected to examine possible uses of crypto assets without setting out a final regulatory position.
That paper has now likely been moved to the back burner indefinitely. According to one government official, current measures already give authorities enough visibility over the sector. India already taxes virtual digital assets, and crypto entities registered in the country are also subject to monitoring by the Financial Intelligence Unit for anti-money laundering compliance.
Because of that, officials believe the sector is already being watched even without a dedicated crypto framework. A second official said, “the paper on cryptocurrency has been kept on the back burner. We can’t give any timeline to it.” That comment reflects the current lack of urgency inside the government on releasing the long-awaited discussion paper.
RBI keeps pressure on crypto and stablecoins
A major reason for the delay is the continued resistance from the Reserve Bank of India. The central bank has repeatedly warned that cryptocurrencies could affect financial stability, the transmission of monetary policy, and capital controls. Those concerns remain central to the policy debate and continue to shape the government’s current approach.
Officials said the RBI is especially not in favour of regulating stablecoins or other forms of cryptocurrency. One official said, “The RBI is not in favour of regulating stablecoins or any other form of cryptocurrency as there are associated systemic risks, which they have highlighted time and again.” That position has slowed efforts to frame a broader crypto policy paper.
The RBI and the Securities and Exchange Board of India are both part of the broader committee that contributed input to the discussion. However, the central bank’s position has remained firm throughout the consultations. Moreover, the government is leaning more on existing tax rules and FIU-led oversight rather than a full regulatory structure.
Digital rupee gains priority as global crypto policy evolves
While private cryptocurrencies remain under scrutiny, policy attention is increasingly focused on the digital rupee. Officials said the RBI and the Department of Financial Services are working to deepen CBDC use across banking channels and government schemes. That effort now appears to be the preferred path for expanding digital payments under official supervision.
The delay in the crypto policy paper is also linked to fast-moving developments outside India. Officials said an earlier draft prepared by an Inter-Ministerial Committee had lost relevance, as international regulatory and market changes outpaced the conclusions in that report. One official said, “The IMC had prepared a draft some time ago, but global developments moved far ahead of the conclusions drawn in that paper, making it less relevant.”
India’s crypto policy has shifted several times over the past few years. In April 2018, the RBI barred lenders and financial intermediaries from dealing with crypto users and exchanges, although the Supreme Court struck down that ban in 2020. A separate bill prepared in 2021 reportedly proposed a ban on private cryptocurrencies, but it was never introduced.
