The Indian government, which collected about ₹ 18.38 lakh crore (about $193.5 billion) in tax revenue in 2025-26, is set to exclude banks from crypto.
The main bank of India, the Reserve Bank of India (RBI), has prepared its approach to ‘reserves’ to cryptocurrencies, in order to keep banks away from crypto trading and private stablecoins while allowing regulated tokens.
Meanwhile, the Indian government wants to tax crypto and wants to stay away from it.
RBI Governor Wants Banks To Stay Away From Crypto
On June 2, RBI Deputy Governor Rohit Jain and RBI Executive Director P. Vasudevan appeared before the Parliamentary Standing Committee on Finance and explained the RBI government’s views on cryptocurrencies.
In an appearance, the Governor said that cryptocurrencies should not be used for payments and that banks should stay away from crypto-related transactions.
The central bank also warned that treating crypto as a fixed currency could make people think it is safe and legal, even though it is still a risky investment.
The reasons behind the RBI’s actions are the growing number of financial crimes involving digital assets. In the financial year 2024-25, there were 49 crypto exchanges registered and the Financial Intelligence Unit (FIU).
According to organizationcrypto transactions have been repeatedly linked to fraud, cyber fraud, illegal gambling networks, anonymous money transfers, and peer-to-peer abuse.
Therefore, the RBI said that banning some crypto services is still an option.
Blockchain Gets Support, Crypto Doesn’t
Actually, what was surprising from RBI’s side was that they did not oppose the blockchain technology itself.
Instead, it has called on policymakers to clearly separate cryptocurrencies from tokenized financial assets such as government securities and corporate bonds, allowing tokenization to take hold without encouraging crypto adoption.
Crypto Trading Is Still Legal in India
Meanwhile, the central bank continues to caution against crypto adoption, but crypto trading remains legal in India. Even digital assets are not recognized as legal tender.
Despite this, investors are still paying 30% tax on profits and 1% TDS on every transaction.
Also, last month, a FIU asked The massive killing of crypto to explain the trading (OTC) price of more than $ 10,000, showing that India is tightening the rules instead of shutting down the industry completely.
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