Parliamentary panel holds meeting on virtual digital assets ecosystem; RBI, ICAI reps attend
New Delhi, July 2
The Parliamentary Standing Committee on Finance on Thursday held an extensive review meeting with officials of the Reserve Bank of India and representatives of the Institute of Chartered Accountants of India to assess the progress of India's Central Bank Digital Currency, popularly known as the digital rupee
They also examinined the broader regulatory and operational landscape surrounding virtual digital assets (VDAs).
The meeting assumes significance at a time when India is attempting to strike a balance between encouraging financial innovation and maintaining monetary and financial stability.
While the RBI has been steadily expanding pilot projects for its sovereign digital currency, privately issued cryptocurrencies and other virtual digital assets continue to pose regulatory, taxation and enforcement challenges.
Speaking to ANI after the meeting, Bhartruhari Mahtab, Chairman of the Parliamentary Standing Committee on Finance, said the discussions formed part of the committee's continuing examination of the country's digital asset ecosystem.
"This meeting was on virtual digital assets. This is the seventh meeting that we are having today. And the RBI had come, and they gave their own view relating to virtual digital assets," Mahtab said.
According to the Chairman, the committee also interacted with the Institute of Chartered Accountants of India to understand the practical challenges faced by accounting professionals and auditors in dealing with digital assets under India's existing legal and taxation framework.
"And subsequently we had a meeting with the Chartered Accountant Association of India. And they have been auditing part of that asset as per the income tax law. But there are certain constraints," Mahtab added.
The committee discussed what further policy interventions may be required to strengthen India's digital financial ecosystem while ensuring adequate safeguards for consumers, financial institutions and the broader economy.
"What India should do is to find a way out. In comparison to other digital assets, RBI's digital asset is not flourishing as such," the Chairman observed, referring to the relatively modest pace of adoption of the digital rupee compared with privately issued digital assets.
The review of the digital currency ecosystem comes amid wider efforts by the parliamentary panel to examine financial sector reforms, modernise regulatory frameworks and understand the implications of rapidly evolving financial technologies.
— ANI
Reader Comments
As a CA, I'm glad ICAI is involved. The taxation of crypto and other VDAs is a nightmare for auditors. The current 30% tax plus TDS discourages retail investors, but the compliance burden falls on us. We need clearer guidelines from the government on how to treat these assets in balance sheets. Hope the panel considers the practical hurdles we face. 📋⚖️
Interesting to see India balancing innovation and stability. I work in fintech and the digital rupee has potential but the ecosystem needs more integration with existing payment systems like UPI. Without that seamless experience, people won't switch from private coins or even cash. RBI should look at how countries like China are doing it. 🇮🇳💡
I have mixed feelings. On one hand, CBDC is good for tracking money and reducing black money. On the other hand, it gives the government too much control over our spending. At least with private crypto, there's some privacy. And 30% tax on crypto gains? That's loot! The panel should address both regulatory clarity AND fair taxation. 😤
Happy to see this is the 7th meeting on VDAs. It shows the committee is serious. But actions speak louder than words. We need a clear legal framework for crypto exchanges and wallets. Many startups are moving to Dubai or Singapore because of the regulatory uncertainty here. India could lead in Web3 if we get the policies right. 🚀🇮🇳
The Chairman's comment about digital rupee not flourishing is telling. People trust RBI, so why isn
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