Lok Sabha Question No. 2253 (UNSTARRED), answered on 2024-12-09
Subject: Rupee Digital Currency
Ministry: FINANCE
Asked by: Dr. Thirumaavalavan Tholkappiyan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2253

TO BE ANSWERED ON 09.12.2024/Agrahayana 18, 1946 (Saka)

## Rupee Digital Currency

2253. Dr. Thirumaavalavan Tholkappiyan:

Will the Minister of FINANCE be pleased to state:

- (a) whether Rupee Digital Currency is issued by Reserve Bank of India and guaranteed by the Central Government;

(b) if so, whether any exercise has been done on pilot basis before full fledged implementation;

(c) the schedule of its phased implementation;

(d)  whether the  Government is aware of the use of other global crypto-currencies in  Narcotic trafficking,  Drug  trafficking,  illegal  foreign  exchange  (Hawala)  and  Terror  funding  in  the country; and

(e) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) : India's Central Bank Digital Currency (CBDC) (e₹) is issued by the Reserve Bank of India and guaranteed by the Central Government.

(b) to (c): Neither the CBDC-retail nor the CBDC-wholesale has been fully rolled out. The Reserve Bank of India (RBI) launched pilots for the Digital Rupee in the Wholesale segment (e₹-W) on November 1, 2022, and in the Retail segment (e₹-R) on December 1, 2022. As of now, no timeline has been set for the full-scale launch of the CBDC.

(d): Yes Sir.

(e): 'Police' and 'Public Order' are State subjects as per the Seventh Schedule of the Constitution of  India.  States/UTs  are  primarily  responsible  for  the  prevention,  detection,  investigation,  and prosecution of crimes through their Law Enforcement Agencies (LEAs). At the national level,

LEAs  have  identified  cases  where  crypto  currencies  have  been  linked  to  activities  such  as narcotics trafficking, drug smuggling, illegal foreign exchange operations etc. The Directorate of Enforcement  is  investigating  several  cases  under  the  provisions  of  the  Prevention  of  Moneylaundering Act, 2002 (PMLA) wherein use of crypto currencies for money-laundering has been found.  In  01  such  case,  it  has  been  noticed  that  crypto  currencies  have  been  used  for  drug trafficking.  Necessary  action  under  the  provisions  of  PMLA  has  been  taken  in  this  case  by seizing crypto currencies (bitcoin) amounting to Rs. 130 crores (approx.). Additionally, proceeds of  crime  amounting  to  Rs.  9.67  crore  have  been  attached.  Further,  02  accused  people  were arrested and 02 prosecution complaints have been filed in this case. Further in 03 cases, it has been  noticed  that  crypto  currencies  have  been  used  for  illegal  forex  exchange  (hawala). Necessary action under the provisions of PMLA has been taken in these cases by seizing crypto currencies  (USDT)  amounting  to  Rs.  1.36  crore  (approx.).  Additionally,  proceeds  of  crime amounting to Rs. 40.46 crore have been frozen. Further, 05 accused persons were arrested and 04 Prosecution Complaints (PCs) including 02 Supplementary PCs have been filed in these cases. Furthermore,  the  Narcotics  Control  Bureau,  during  its  investigations,  has  observed  instances where drug traffickers have used cryptocurrencies such as Bitcoin, Monero, XMR, USDT, TRX, and Ether.

*****