Government of India and RBI on Board with the new proposed Crypto Rules

India is still struggling to come to a conclusion on the crypto regulation matter. The Indian Finance Minister, Nirmala Sitharaman, said on Monday that the finance ministry and the central bank are on board with the new crypto laws outlined in the budget session proposal.

The Reserve Bank of India and the government are both on board. “Discussions are ongoing. Even before the budget discussions were ongoing, and they will continue. Any discussion the government takes or the Reserve Bank takes, it happens only after discussions with each other,” after speaking to the RBI’s central board, Sitharaman stated in a press conference.

Prior to the budget, the country was discussing. Sitharaman said that discussions would continue on this matter. 

“It is a digital currency from the central bank of some sort, of some shape, some color, some description, so obviously it will be with both of us [government and RBI]having had enough consultations.”

The new regulatory framework in India

The new crypto guidelines in India were revealed as part of the annual budget address on February 1 and are expected to be drafted in March.

As TheCoinRise reported, the proposals included a 30% tax on any income derived from the transfer of virtual digital assets, a first for the country, a deadline of April 2023 for the introduction of the digital rupee (India’s version of a central bank digital currency), and a 1% tax deducted at source (TDS) on any transaction.

Rumors regarding a disagreement between the central bank (RBI) and the ministry were dismissed by the finance minister. We have been, she added, “respecting each other’s domain, and knowing what we have to do with each other’s priorities and in the national interest.”

Notably, the RBI has proposed a blanket ban on cryptocurrency several times, which has been opposed by the government in the past.