RBI is an acronym for the Reserve Bank of India, which is the central bank of India. The RBI regulates monetary policy in India and oversees all commercial banks, as well as non-banking financial companies (NBFCs). It also manages exchange control regulations and acts as a lender of last resort to the banking system.
The RBI has been involved with cryptocurrency since April 2018 when it issued a circular banning regulated entities from dealing in cryptocurrencies or providing services related to them due to concerns over money laundering and terrorist financing activities. In March 2020, however, the Supreme Court quashed this ban and allowed crypto exchanges to operate again.
In recent years, there have been reports that the RBI may launch its own digital currency – referred to as “Digital Rupee” – although no official announcement has been made yet. Additionally, some Indian states are considering their own digital currencies based on blockchain technology.
Given its involvement in regulating cryptocurrencies and potential plans for issuing its own digital currency, it’s likely that the RBI will remain at the forefront of developments within this sector in India going forward.
