The finance ministry and the Reserve Bank of India (RBI) are on the same page on cryptocurrencies and other issues and there is complete harmony between the two entities in the last few years, top policymakers said on Monday.
“Whatever the government does we consult and have discussions with the Reserve Bank of India and therefore we take calls. So, if we were to tax 30% and then also go and discuss GST and everything else Iwould be tying RBI’s hands if I hadn’t even talked with them…There is a level of partnering with each other that is happening,” finance minister Nirmala Sitharaman told a news conference after the end of the RBI’s central board meeting.
“With the RBI and the ministry not just on crypto but on every other thing as well I think in the last few years you would have noticed that there is complete harmony with which we are working, respecting each other’s domains and also knowing what we have to do with each other’s priorities and in the interest of the nation. There is no turfing here,” the minister said, putting at rest speculation about a divergence of views on the issue of cryptocurrency.
India had emerged as one of the few to tax digital assets such as cryptocurrencies and non-fungible tokens (NFTs) when Sitharaman announced a 30% tax on transfer of such assets in her Union Budget for 2022-23. The move has triggered a debate on the legality of such assets and whether taxes on them have legitimised them.