DFS Secretary Nagaraju M Voices Scepticism on Cryptocurrency and Endorses RBI's Cautious Approach

The Department of Financial Services Secretary, Nagaraju M, expressed scepticism about cryptocurrencies like Bitcoin. At an SBI event, he supported the Reserve Bank's cautious stance on these assets. The RBI has consistently opposed recognising cryptocurrencies due to financial stability concerns. Nagaraju shared his personal doubts about cryptocurrencies, stating, "I am also very sceptical of cryptocurrency. Not now, not after becoming the financial secretary. Even as an individual, I am very doubtful of the entire scheme of cryptocurrency."

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Despite the government's indecision over the years on cryptocurrencies, it has begun taxing gains from such assets heavily. This move has led the industry to believe it has gained some legitimacy. Nagaraju mentioned that his computer science graduate sons also view cryptocurrencies with suspicion, and he tends to follow their advice. He added, "So, I actually follow their sons advice. So, I think I will hold on to that. RBI is also very, very careful in that. Cryptocurrency, we need to be very careful."

Microfinance and Infrastructure Finance

Nagaraju also addressed concerns in micro-lending portfolios at the event. He urged microfinance companies to exercise caution in their lending decisions. He emphasised that a women's self-help group should operate for at least six months with a solid business model before receiving loans.

Additionally, Nagaraju highlighted the need for climate-proofing infrastructure finance as a priority for the banking community. This focus aims to ensure sustainable development and resilience against climate-related risks.

Gender Diversity and Global Ambitions

The DFS Secretary pointed out the lack of women on boards of state-run banks in India. He stated that the government aims to improve this aspect by increasing female representation in leadership roles within these institutions.

Nagaraju also mentioned the government's ambition for at least one Indian bank to rank among the top ten globally by asset size. SBI's Managing Director Ashwini Tewari revealed that their internal goal is to elevate SBI into the top-10 by market capitalisation but did not specify a timeline.

GST System Improvements

Union Revenue Secretary Sanjay Malhotra spoke at the same event about ongoing efforts to address issues within the Goods and Services Tax system. He acknowledged some wrinkles in the system and assured that work is underway to resolve them.

Malhotra announced that GST Appellate Tribunals would be established by the end of this fiscal year. Additionally, efforts are being made to curb bogus refunds and incorrect input tax credit claims.

The discussions at the event covered various financial topics, reflecting both challenges and aspirations within India's economic landscape. The emphasis on cautious approaches and strategic goals highlights a commitment to stability and growth.