Lok Sabha Question No. 4016 (UNSTARRED), answered on 2025-08-18
Subject: Reforms in RBI
Ministry: FINANCE
Asked by: Shri Manish Tewari

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 4016

ANSWERED ON MONDAY, AUGUST 18, 2025/ SRAVANA 27, 1947 (SAKA)

## REFORMS IN RBI

## 4016. SHRI MANISH TEWARI:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government is considering comprehensive reforms in the Reserve Bank of India (RBI) in light of its evolving functions including monetary policy, Government debt management, and financial sector regulation;

(b) the current status of the Central Bank Digital Currency (CBDC) rollout by RBI and future roadmap;

(c) the RBI's current official position on the regulation and legal status of crypto assets and decentralised  virtual  currencies  along  with  the  details  of  statutory  framework  under consideration;

(d)  whether  the  Government  has  any  recommendations  for  separation  of  RBI's  roles  as monetary authority and investment banker to Central/ State Governments, if so, the details thereof; and

(e) if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (e): The basic functions of the Reserve Bank of India (RBI) are to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage, to have a modern  monetary  policy  framework  to  meet  the  challenge  of  an  increasingly  complex economy, and to maintain price stability while keeping in mind the objective of growth. Over the years, RBI has performed a wide range of functions to support the Indian economy.

The legislative framework for regulation and supervision of financial institutions and markets is primarily drawn from enabling provisions of the Reserve Bank of India Act (RBI Act), 1934, Banking Regulation Act, 1949, National Housing Bank Act, 1987, Foreign Exchange

Management Act 1999, Payment and Settlement Systems Act, 2007, SARFAESI Act, 2002, Credit Information Companies (Regulation) Act, 2005, and Factoring Regulation Act, 2011.

RBI Act vests RBI with the responsibility of management of public debt of the Government of  India  and  (by  agreement)  of  State  Governments.  Within  this  overarching  statutory framework,  RBI  has  been  issuing  regulations  to  regulate  and  develop  the  government securities market.

To  keep  pace  with  the  evolving  role  of  RBI,  and  national  and  global  regulatory  and macroeconomic  developments,  Government  and  RBI  engage  in  extensive  stakeholders' consultations and also constitute various working groups / committees from time-to-time, and based on these, and assessments of requirements, necessary reforms measures are taken on an ongoing basis. The autonomy for RBI, within the framework of the RBI Act, is an essential and accepted governance requirement. There is an institutional harmony based on mutual respect, matured relationship and effective co-ordination between the Government and RBI.

India's Central Bank Digital Currency (CBDC) is a digital form of currency notes issued by a central bank. CBDC, being a sovereign currency, holds unique advantages of central bank money viz. , trust, safety, liquidity, settlement finality and integrity. RBI has informed that, the CBDC-Retail (e ₹ -R) pilot started with the initial use cases of person-to-person (P2P) and person-to-merchant (P2M) transactions. RBI has since rolled out multiple pilots exploring offline and programmability features as well. As at end-March 2025, the pilot in the e ₹ -R segment was expanded to 17 banks and 60 lakh users since its inception in December 2022. To further enhance adoption and improve distribution, certain non-banks have been allowed to offer CBDC wallets.

With regard to RBI's current official position on the regulation and legal status of crypto assets,  RBI  has  informed  that  cryptocurrencies  and  crypto  assets  do  not  fall  under  the regulatory domain of RBI.

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