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RBI keeping a close watch on transactions involving cryptocurrencies: Patel

In April, finance ministry made an inter- disciplinary committee to examine existing framework

Press Trust of India  |  New Delhi 

RBI, Urjit, Urjit Patel
Urjit Patel

The Reserve Bank is keeping a close watch on transactions involving cryptocurrencies, Governor is understood to have told the members of the Parliamentary panel on today.

During the more than three-hour long meeting of the Standing Committee on here, the members raised concerns about rising number of transactions in various cryptocurrencies such as Bitcoin, Ethereum, Zcash, litecoin and

They also wanted to know from the governor whether the use of cryptocurrencies is legally permitted, a member said.

Members, including BJP MP Nishikant Dubey, said rise in usage of virtual currencies is a matter of concern as it is difficult to establish the source of funds.

Responding to the concerns raised, Patel told the members that the is keeping a close watch on such transactions.

He also told the panel that an inter-disciplinary committee has been formed to discuss the legality of cryptocurrencies, according to panel members who did not wish to be named.

In April, the ministry constituted an inter- disciplinary committee to examine the existing framework for virtual currencies, including Bitcoins, and suggest measures to deal with issues like money laundering.

Leaders from G20 countries, during their meeting last week, had discussed about the threat of cyptocurrencies being possibly used for terror financing.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, July 12 2017. 22:33 IST