Cryptocurrency and CBDC — Policy Reforms

Entry	Year	Description	Impact
Proposed 'Cryptocurrency and Regulation of Official Digital Currency Bill, 2021'	2021 (Proposed)	This bill was intended to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. Simultaneously, it aimed to prohibit all private cryptocurrencies in India, though with certain exceptions to promote the underlying technology of cryptocurrency and its uses. The bill was listed for introduction in Parliament but has not yet been enacted, indicating ongoing governmental deliberation on the precise regulatory approach.	If enacted, this bill would provide a clear legal basis for the RBI's CBDC, granting it legal tender status. It would also significantly alter the legal landscape for private cryptocurrencies, potentially leading to a near-total ban, thereby impacting investors, exchanges, and the broader crypto ecosystem in India. Its non-enactment highlights the complexity and global divergence in crypto regulation.
Potential Amendments to RBI Act, 1934	Ongoing/Future	To formally introduce and operationalize the Central Bank Digital Currency (CBDC) as legal tender, the Reserve Bank of India Act, 1934, would likely require amendments. These amendments would explicitly define 'digital currency' as a form of currency issued by the RBI and grant it the same legal tender status as physical banknotes. This would provide the necessary statutory backing for the digital rupee.	Such amendments would solidify the legal foundation of the digital rupee, making it a direct liability of the RBI and ensuring its acceptance across the economy. This is a crucial step for the full-scale rollout and public adoption of the CBDC, integrating it seamlessly into India's monetary and payment system framework.