Given that cryptocurrencies can be widely misused, India will take a thoughtful decision on regulation around it without harming innovation, Finance Minister Nirmala Sitharaman told during an interaction at Stanford University.
“It has to take its time … for all of us to make sure that with the least amount of information available, we’re making the appropriate decisions. It can’t be rushed,” FM Sitharaman Said that in the absence of proper regulation cryptocurrency Manipulation can also be used for money laundering or terror financing.
“So, these are some of the concerns, not only India, but many countries of the world have also discussed in global, multilateral platforms.”
Noting that the government is open to innovation, it said, “Therefore, we do not intend to hurt it (innovations around crypto) in any way…
India is planning to introduce a central bank backed digital currency or Central Bank Digital Currency (CBDC). Announcing this in his budget speech, the Finance Minister had said, “Digital Rupee or CBDC will be issued by RBI in the coming financial year.”
He also announced that profits from any other private digital asset would be taxed at 30% from April 1.
HDFC Merger:
On the merger of HDFC and HDFC Bank, Sitharaman said, “It is a good move as India needs bigger banks to take care of the growing needs of infra financing.”
Earlier this month, India’s largest private lender HDFC Bank agreed to take on the largest home mortgage lender in a deal worth around USD 40 billion to create a financial services titan in the biggest deal in the country’s corporate history. .
The proposed entity will have a combined asset base of approx. 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.
The transaction includes the amalgamation of HDFC and its two wholly owned subsidiaries HDFC Holdings and HDFC Investments with HDFC Bank.
(with inputs from agencies)