Government & RBI working together on cryptocurrency rules: FM Nirmala Sitharaman

Sitharaman also said that there was a “lot of positivity” around the upcoming initial public offer (IPO) of Life Insurance Corporation.

FM Nirmala Sitharaman was speaking after having addressed the Central Board of Directors of the RBI in its customary post-budget meeting. The government and the Reserve Bank of India (RBI) are “on board” with respect to the issue of cryptocurrency, as discussions are going on the matter of digital virtual currencies, said Finance Minister Nirmala Sitharaman.

Sitharaman also said that there was a “lot of positivity” around the upcoming initial public offer (IPO) of Life Insurance Corporation. With the government planning to sell its 5 per cent equity, the LIC IPO is predicted to the tremendous in the Indian capital market. “A huge decision like this is never a knee-jerk reaction. It is done with consciousness… And I can see after the news, the reception, there is a buzz in the air,” Sitharaman asserted.

Regurgitating the central bank’s serious questions over cryptocurrencies, RBI Governor Shaktikanta Das had last Thursday explained these are a big threat to the country’s financial and macroeconomic vitality. He had also advised investors that cryptocurrencies do not have any underlying investment, not even a tulip.

The Union Budget 2022-23 has proposed a 30 per cent tax on private cryptocurrencies and non-fungible tokens.

Das announced the issuance of green bonds, another proposal for the next year’s Budget, will broaden the participation of investors in the Indian market. He said, Cash and debt management organization will meet next month and they will aim at plans for it. The primary real rationale behind going for the green bond is that the world over there is a lot of investors who have committed funds to invest in green bonds. So essentially when you float a green bond that has a specified and genuine purpose, when you float a green bond you are broadening the participation of international investors in the domestic bond market.

However, answering a query on whether the CBI has been sluggish in taking action in the ABG Shipyard case, Sitharaman told bankers actually took “lesser than what is normally an average time to detect these kinds of frauds.” The CBI Saturday announced that it has booked ABG Shipyard Ltd (ABGSL) and its directors for fraudulent loan default to the tune of Rs 22,842 crore.

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