1. Why is the RBI concerned about cryptocurrencies?
The RBI believes private cryptocurrencies could weaken monetary policy, create financial instability, enable illegal transactions, and complicate tax enforcement.
2. What is the Digital Rupee (e₹)?
The Digital Rupee is India’s Central Bank Digital Currency (CBDC), issued and backed by the RBI for secure digital payments.
3. Why are emerging economies more vulnerable to crypto risks?
Developing economies rely more on banking systems and stable capital flows, making them more sensitive to large shifts into private digital assets.
4. How are cryptocurrencies taxed in India?
Crypto gains are taxed at 30%, and many transactions are subject to 1% Tax Deducted at Source (TDS) under current tax rules.
5. Has India banned cryptocurrencies?
No. Cryptocurrencies are not banned, but they remain largely unregulated, and the RBI continues to advocate for stricter controls rather than granting them legal recognition.
