Responding to a question raised by the states, Finance Minister Pankaj Choudhary said there was no plan to introduce cryptocurrency.
In the 2022 budget, it is proposed to levy a tax of 30 per cent on income earned from the sale / exchange of cryptocurrency and virtual digital assets, and also announced that TDS will be levied at a rate of one per cent on transactions exceeding the limit on the transfer of virtual digital assets. Thus expectations and assumptions have been raised as to whether cryptocurrency will be allowed.
In response to a question raised by the States Council, Finance Minister Pankaj Choudhary said in writing that there was no plan to introduce cryptocurrency and that it was not currently formalized in India.
The Minister said, “The Reserve Bank of India (RBI) does not issue cryptocurrencies. The only paper currency in circulation at the moment is legal tender. Issued by the RBI under the provisions of the RBI Act, 1994. The digital version of the traditional paper currency is called the Central Bank Digital Currency (CBDC). ”
CBDC said the digital currency will reduce dependence on paper currency and reduce transaction costs.
He further informed the Cabinet that the printing of notes has decreased over time. While Rs.4,378 crore notes were printed in 2019-20 as Rs.4,012 crore notes were printed in 2020-21. At the same time, only notes worth Rs.7,965 crore were printed in 2016-17.