Standing Committee on Finance Schedules VDA Review
The Standing Committee on Finance, a parliamentary body under the Lok Sabha Secretariat, will convene on Thursday, July 2, 2026, to examine the regulatory landscape for Virtual Digital Assets (VDAs). The meeting, scheduled at the Parliament House Annexe in New Delhi, is exclusively dedicated to the subject 'A Study on Virtual Digital Assets (VDAs) and Way Forward,' according to a notice issued on June 25, 2026.
The session is divided into three parts, with the first two featuring oral evidence from key stakeholders: the Reserve Bank of India (RBI) and the Institute of Chartered Accountants of India (ICAI).
RBI to Present on Financial Stability and Monetary Policy Risks
From 11:00 AM to 12:30 PM, the Committee will record oral evidence from representatives of the RBI. The central bank is expected to present its assessment of VDAs, covering financial stability risks, impact on monetary policy, concerns around money laundering, investor protection, and the need for a regulatory framework. The RBI has historically cautioned against private cryptocurrencies while supporting a central bank digital currency (CBDC), such as the Digital Rupee.
India currently imposes a 30% tax on gains from VDAs and a 1% Tax Deducted at Source (TDS) on transfers, but lacks a comprehensive law governing trading, exchanges, or investor safeguards. The July 2 sitting signals Parliament's intent to gather expert inputs before shaping a potential regulatory or legislative response.
ICAI to Discuss Taxation and Accounting Standards
The second session, from 12:30 PM to 1:30 PM, will involve discussions with representatives of the ICAI. The institute is expected to share inputs on taxation of VDAs, accounting standards for crypto holdings, audit challenges, and disclosure norms for companies and individuals dealing in digital assets. Since the introduction of the 30% tax and 1% TDS in 2022, the ICAI has been working on guidance notes for VDA transactions.
Following a lunch break, the Committee will reconvene at 2:00 PM for internal deliberations. During this closed-door session, members will discuss the depositions made by the RBI and ICAI and examine possible recommendations for India's VDA ecosystem.
Committee Role and Context
The notice, issued by Director Bharti Sanjeev Tuteja, states that agenda papers will be circulated to members through the Member's Portal and email. Members have been requested to attend the sitting. The Standing Committee on Finance examines legislation and policies related to the Ministry of Finance, RBI, SEBI, banks, insurance, and taxation. Unlike the Public Accounts Committee, which audits past expenditure, this committee focuses on current policy issues and future frameworks.
The July 2 meeting represents a significant step toward developing a regulatory framework for VDAs in India, as the country currently lacks comprehensive legislation governing the sector.
