India Weighs Stablecoin Rules Even as RBI Rejects Pressure to Match US
What Is India Considering for Stablecoin Regulation?
India’s government may introduce a formal policy framework for stablecoins in its upcoming Economic Survey for 2025–2026, marking a potential shift later than years of uncertainty around digital assets. According to reporting from MoneyControl, the Ministry of Finance is expected to present its position on stablecoins in the annual survey, which outlines policy priorities for the year ahead.
If confirmed, it would be the strongest signal yet that New Delhi is preparing to move from blanket skepticism toward regulated digital-asset frameworks, especially for tokens backed by fiat reserves. For India — the world’s most populous country and a major global payments hub — the introduction of stablecoin rules would be a significant strategic pivot.
However, the Reserve Bank of India (RBI) is not fully aligned with this direction. RBI Governor Sanjay Malhotra reaffirmed the central bank’s “cautious” stance on Thursday, saying the government will make the final call, but the central bank remains concerned about risks tied to crypto assets.
“We have a very cautious approach towards crypto because of various concerns that we have,” Malhotra said at the Delhi School of Economics. “There is a working group which was set up earlier, and they will make a final call as to how, if at all, crypto is to be handled in our country.”
Investor Takeaway
RBI Stands Firm: Crypto Not Needed Because India Has Robust Digital Payments
Malhotra pushed back against the idea that India should respond to the United States’ stablecoin innovations, including the passage of the GENIUS Act. He argued that the U.S. is playing catch-up on payments infrastructure, while India already has multiple quick, low-cost systems serving the public.
India’s payments stack includes:
- Unified Payments Interface (UPI): a 24/7 instant-payments network widely adopted across retail and business transactions.
- National Electronic Funds Transfer (NEFT): hourly settlement, available around the clock.
- (RTGS): high-value payments settled in real time.
In this context, the RBI argues that stablecoins do not solve a core difficulty in India’s domestic payments ecosystem. Instead, the central bank is prioritizing expansion of its central bank digital currency (CBDC), which it views as a securer alternative for programmable payments and wholesale settlement.
Why Stablecoin Regulation Would Be a large Shift for India
For years, India maintained a posture that oscillated between skepticism and outright opposition to cryptocurrencies. Multiple draft laws proposed bans or severe restrictions, and taxation rules imposed steep penalties on trading activity. Despite this, India has remained one of the largest markets for crypto users globally.
A stablecoin framework would represent:
- Regulatory legitimacy: introducing rules would signal that digital assets are no longer treated solely as a threat.
- Institutional engagement: banks and financial institutions could explore tokenized cash models.
- Market acceleration: legitimization could spur adoption and lift in the region.
The move would align India with global peers in Asia and the Middle East who are establishing regulated environments for fiat-backed tokens used in payments, settlements and treasury operations.
Ongoing Skepticism Toward “Unbacked” Crypto Assets
Even as policymakers consider stablecoin rules, several Indian officials continue to question the value of non-stablecoin crypto assets. In October, Commerce Minister Piyush Goyal argued that the government neither encourages nor discourages cryptocurrencies, but he cast doubt on most tokens due to their lack of sovereign backing or underlying assets.
This skepticism persists despite India’s position as a major global contributor to . The government’s concerns have centered around:
- volatility
- capital-flight risk
- consumer protection gaps
- money-laundering exposure
Meanwhile, blockchain-analysis firm Elliptic estimates alone have stolen more than 2 billion dollars in crypto so far in 2025 — a statistic that continues to fuel security-driven concerns in global policy circles.
Investor Takeaway
What Comes Next?
The Economic Survey will serve as the first visible signal of India’s policy direction. If stablecoin regulations appear in the document, formal legislative proposals could follow in 2026.
Meanwhile, the RBI will continue expanding its CBDC pilots and strengthening India’s — areas where it views India as a global leader.
For markets, the key question is whether India will treat stablecoins as regulated financial instruments akin to e-money, or impose a tightly controlled framework with limited commercial usage. Either way, the debate marks a pivotal transition in one of the world’s largest and quickest-growing economies.
