Nirmala Sitharaman, India’s Finance Minister has stated that approval from the cabinet on the cryptocurrency bill is still awaited. Under the Chairmanship of Secretary (Economic Affairs), the inter-ministerial panel on cryptocurrency to study the matters related to digital currencies and give specific remedy has submitted its report beforehand.
The recommendations given by the panel include banning private cryptocurrencies, except any virtual currency issued by the state. During her interaction with the media, she said, “Cabinet note is ready on cryptocurrency (Bill). I am awaiting Cabinet to clear that.”
On the other hand, RBI too has expressed concerns over the cryptocurrencies traded in the market. They have conveyed the same to the government in the nick of time.
Talking about the development, Shaktikanta Das, the RBI Governor has said that both the government and the RBI are “committed to financial stability”. He further stated that there are no differences between the central bank and the Finance Ministry on the matter.
According to the reports, some “major concerns” have been flagged by the RBI about cryptocurrencies. However, Das clarified that the government is in agreement with everything that has been conveyed by the RBI.
In March, the banks and financial institutions were allowed to set aside the RBI’s 2018 circular that prohibited crypto deals. Cryptocurrencies require encryption techniques to regulate the generation of units, other than verifying the transfer of funds.
Headed by Justice R F Nariman, a three-judge bench said that the RBI circular is liable to be set aside on the ground of “proportionality”.
The bench comprising of justices Aniruddha Bose and V Ramasubramanian said, “Accordingly, the writ petitions are allowed and the circular dated April 6, 2018, is set aside.”