{"id":917410,"date":"2026-07-04T10:12:21","date_gmt":"2026-07-04T15:12:21","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/07\/04\/indias-rbi-wants-banks-to-stay-away-from-crypto-even-ready-to-ban-it\/"},"modified":"2026-07-04T10:12:21","modified_gmt":"2026-07-04T15:12:21","slug":"indias-rbi-wants-banks-to-stay-away-from-crypto-even-ready-to-ban-it","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/07\/04\/indias-rbi-wants-banks-to-stay-away-from-crypto-even-ready-to-ban-it\/","title":{"rendered":"India\u2019s RBI Wants Banks To Stay Away From Crypto, Even Ready To Ban It!"},"content":{"rendered":"
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The Indian government, which collected nearly \u20b918.38 lakh crore (around $193.5 billion) in tax revenue during the 2025-26 financial year, is set to isolate banks from crypto.\u00a0<\/p>\n

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India\u2019s biggest bank, the Reserve Bank of India (RBI), has proposed its \u2018containment\u2019 approach to cryptocurrencies, aiming to keep banks away from crypto transactions and private stablecoins while allowing regulated tokenization.<\/p>\n

Meanwhile, the Indian government wants to tax the crypto but also wants to keep a distance.\u00a0<\/p>\n<\/div>\n

On 2 June, the RBI Deputy Governor Rohit Jain and RBI Executive Director P. Vasudevan appeared before the Parliamentary Standing Committee on Finance and explained the RBI\u2019s official views on cryptocurrencies.<\/p>\n

During the appearance, the Governor said that cryptocurrencies should not be used for payments and that banks should stay away from crypto-related businesses.<\/p>\n

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The central bank also warned that treating crypto like normal financial products could make people think it is safe and officially approved, even though it remains a risky investment.<\/p>\n

The reasons behind the RBI\u2019s stance are the rise in financial crimes involving digital assets. During the 2024-25 financial year, 49 cryptocurrency exchanges were registered<\/a> with the Financial Intelligence Unit (FIU).\u00a0<\/p>\n

According to the agency<\/a>, crypto transactions were repeatedly linked to scams, online fraud, illegal gambling networks, unaccounted money transfers, and peer-to-peer abuse.<\/p>\n

Therefore, the RBI said that banning some crypto activities is still an option.<\/p>\n

Blockchain Gets Support, Crypto Doesn\u2019t<\/h3>\n

Actually, what was surprising from the RBI side was that they do not oppose blockchain technology itself.\u00a0<\/p>\n

Instead, it has asked policymakers to clearly separate cryptocurrencies from tokenized financial assets such as government securities and corporate bonds, allowing tokenization to develop without encouraging wider crypto adoption.<\/p>\n