{"id":917402,"date":"2026-07-04T10:12:26","date_gmt":"2026-07-04T15:12:26","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/07\/04\/rbi-urges-india-to-restrict-crypto-banking-access-in-new-digital-asset-policy\/"},"modified":"2026-07-04T10:12:26","modified_gmt":"2026-07-04T15:12:26","slug":"rbi-urges-india-to-restrict-crypto-banking-access-in-new-digital-asset-policy","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/07\/04\/rbi-urges-india-to-restrict-crypto-banking-access-in-new-digital-asset-policy\/","title":{"rendered":"RBI Urges India to Restrict Crypto Banking Access in New Digital Asset Policy"},"content":{"rendered":"
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You are here: Home<\/span><\/a><\/span> \/<\/span> Cryptocurrency News<\/span><\/a><\/span> \/<\/span> RBI Urges India to Restrict Crypto Banking Access in New Digital Asset Policy<\/p>\n

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\"RBI<\/p>\n

Reserve Bank of India (RBI) has reportedly urged policymakers to ensure that the use of cryptocurrencies and privately owned stablecoins is not allowed in the Indian banking sector.<\/p>\n

As reported<\/a> by The Economic Times, the Deputy Governor of the Reserve Bank of India, Mr. Rohit Jain, and Executive Director, Mr. P. Vasudevan, made the representations of the central bank before the Parliamentary Standing Committee on Finance. These representations have come as parliamentarians draft a report that might influence the future crypto policy in India. RBI Wants to Limit Crypto\u2019s Role in the Financial System<\/p>\n

The RBI mentioned in a background note to the committee that a ban on cryptocurrencies continues to be a relevant policy choice. It also advised against the use of digital assets for making payments and settlements and reducing bank exposure to cryptocurrencies and private stablecoins.<\/p>\n

The central bank stressed that imposing conventional financial standards on cryptos could create a feeling of endorsement or security for investors to jump into the high-risk investments.<\/p>\n

The RBI emphasized that cryptocurrencies should not be considered as tokenized financial products. They advised the policymakers to keep a clear distinction between crypto assets and tokenized government securities and corporate bonds, as tokenization would face problems due to crypto regulations.<\/p>\n

Also Read | IMF Cautions Tokenization Could Remake or Fracture Finance<\/a><\/strong><\/p>\n

India Remains a Global Leader in Crypto Adoption<\/h2>\n

In spite of the warnings from the RBI, India still ranks high among other countries in terms of cryptocurrency market share. According to the Global Crypto Adoption Index published<\/a> by Chainalysis in 2025, India is ranked highest on the list, although the RBI raised concerns about the methodology used.<\/p>\n

RBI Revisits Its Earlier Banking Restrictions<\/h2>\n

RBI\u2019s recent stance appears<\/a> to be similar to its stance from 2018, when it mandated that banks regulated by it not provide any services to cryptocurrency entities and those who deal with cryptocurrency operations.<\/p>\n

While the ruling did not forbid individuals from holding or trading in cryptocurrencies, the ruling had, in effect, cut off cryptocurrency exchanges from the banking sector, rendering their operations extremely difficult.<\/p>\n

However, in March 2020, the Supreme Court of India quashed<\/a> the RBI ban imposed on crypto exchanges, following a case filed by internet-based associations. The decision of the court was based on its agreement that the Reserve Bank of India had the power to impose the regulation, but it was an unnecessary measure.<\/p>\n

The Reserve Bank of India in May 2021 stated<\/a> that banks cannot use the cancelled 2018 circular to caution their customers regarding their cryptocurrency dealings. It is still incumbent upon banks to comply with KYC, AML, and forex regulations.<\/p>\n

Also Read | Ripple\u2019s Chris Larsen Reportedly Backs Senator Gillibrand\u2019s Son\u2019s APEC Venture<\/a><\/strong><\/p>\n<\/div>\n

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About Bena Ilyas<\/span><\/h3>\n
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Bena Ilyas is a Global News Correspondent and Market Analyst at Tronweekly with over four years of experience covering global cryptocurrency, blockchain, and Web3 developments. She has written 1,000+ articles for leading crypto news platforms, reporting on Bitcoin, Ethereum, altcoins, DeFi, and global crypto regulation, alongside Web3 trends, Layer 2 ecosystems, and AI-driven crypto use cases. Her work is based on verified sources and fact-based reporting for global market participants.<\/p>\n

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\n Bena Ilyas<\/p>\n","protected":false},"excerpt":{"rendered":"

You are here: Home \/ Cryptocurrency News \/ RBI Urges India to Restrict Crypto Banking Access in New Digital Asset Policy Reserve Bank of India (RBI) has reportedly urged policymakers to ensure that the use of cryptocurrencies and privately owned stablecoins is not allowed in the Indian banking sector. As reported by The Economic Times<\/p>\n","protected":false},"author":1,"featured_media":917403,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126,29332],"tags":[],"class_list":["post-917402","post","type-post","status-publish","format-standard","has-post-thumbnail","category-india","category-urges"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/917402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=917402"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/917402\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/917403"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=917402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=917402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=917402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}