The government on Tuesday said it will take all measures to eliminate the use crypto-assets in funding illegitimate activities or as part of the payment system.
In a written reply to the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary also said the government will explore the use of block chain technology proactively for ushering in digital economy.
“The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system,” he said.
Under the chairmanship of Secretary (Economic affairs), a High-Level Inter-Ministerial Committee was established to examine the issues surrounding virtual currencies. It recommended that all private cryptocurrencies be banned in India, with the exception of any cryptocurrency issued by State. Following due process, the minister stated that the government would make a decision about the IMC’s recommendations and, if necessary, introduce a legislative proposal to Parliament.
Minister of State for Finance Bhagwat Karad
Minister of State for Finance Bhagwat Kard replied that public sector banks (PSBs), have recovered Rs 4,52,480 from NPA and written off accounts defaulters during the past five years and have recovered an aggregate of Rs 20,334 crore from willful defaulters up to March 31, 2021.
He stated that the RBI had informed it that data on wilfuldefaulters is available with it starting in 2019. According to data reported to CRILC by banks, the total increase in unique wilfuldefaulters was 248 during 2019-20. This has fallen to 156 during 2020-21.
Karad replied that the gross NPAs reported to CRILC by both public and private banks (including exposures not classified as corporate exposure due to being between Rs 5 and Rs 7.5 million) made up 66.68% of total gross NPAs.