Discussions on with RBI over digital currency: FM

Sitharaman in her Budget speech on February 1 had announced that Digital Rupee or Central Bank Digital Currency would be issued by the RBI in the coming fiscal year

Days after RBI Governor Shaktikanta Das warned people against investing in cryptocurrency, Finance Minister Nirmala Sitharaman on Monday said that the government and RBI are working in complete harmony on cryptocurrency.

She went a step further to say, "not just on crypto but on every other thing as well, I think there's complete harmony with which we're working, respecting each other's domain and also knowing what we've to do with each other's priorities in the interest of the nation. There's no turfing here".

The finance minister said this at a press conference after addressing the RBI board.

Also Read: Cryptocurrencies a threat to financial stability; value not even a tulip: Shaktikanta Das

Das said like several other issues, this particular issue is internally under discussion between the RBI and the government. Das was also talking about the central bank-backed digital currency.

"Whatever points we have we discuss with the government," he added.

Das has been critical of cryptocurrency ever since. Last Thursday, he had said, "private cryptocurrency is a huge threat to macro-economic and financial stability. Investors should keep in mind that they are investing at their own risk. These cryptocurrencies have no underlying value -- not even a tulip".

Also Read | Decision on banning cryptos or not to come later: FM Nirmala Sitharaman

On LIC IPO, Sitharaman said there was a “lot of positivity” around the upcoming initial public offer of the Life Insurance Corporation. The government planning to sell its 5% share, making LIC IPO likely the biggest in the Indian capital market.

“A big decision like this is never a knee-jerk reaction. It is done with consciousness… And I can see after the announcement, the reception, there is a buzz in the air,” the finance minister said.

To another question on the ABG Shipyard case and whether the CBI has been slow in taking action, Sitharaman said the ABG Shipyard account turned NPA during the erstwhile UPA regime.

Also Read | Cryptocurrencies not legal right now, says Union minister Karad

She said that bankers actually took “lesser than what is normally an average time to detect these kinds of frauds.”

The CBI has booked ABG Shipyard Ltd (ABGSL) and its directors for fraudulent loan default to the tune of Rs 22,842 crore.

“This is actually an account which became an NPA in November 2013. After that, because it is a consortium of banks who had a business with them, they had all sat together to see how best restructuring can be done, which is a due process done for any account under stress more so it is a big account and also becoming an NPA. So that initiative was taken by the consortium, SBI had been the lead, ICICI Bank is another big bank, all of them sat together and started working on it. So 2014 onwards this process was going on,” she added.

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