According to The Economic Times, senior officials of the Reserve Bank of India (RBI) submitted opinions to the Indian Parliament's Standing Committee on Finance, supporting a "containment strategy" biased toward prohibition for crypto assets, and recommending that banks and other regulated financial institutions remain isolated from crypto assets and privately issued stablecoins. The RBI stated that prohibition remains one of the policy options recognized by international standard-setting frameworks; if a traditional regulatory framework is adopted for crypto assets, it could lend legitimacy to speculative products and create a "false sense of security" for users.

The RBI also warned that large-scale adoption of stablecoins could weaken India's monetary sovereignty and financial stability. At the same time, the RBI advised policymakers to distinguish between speculative crypto assets and the tokenization of regulated financial instruments such as government bonds and corporate bonds, so as to avoid restricting innovation in tokenization.