Fin services secy Nagaraju M sceptical about crypto backs RBI's cautionary stance

Mumbai, Nov 18 (PTI) Department of Financial Services (DFS) Secretary Nagaraju M on Monday said he is "sceptical" about cryptocurrencies like Bitcoin and stressed on the need to adopt a cautious approach on such assets.
     Speaking at an event organised by SBI, Nagaraju backed the Reserve Bank's "careful" stance on such assets.
     It can be noted that the RBI has been vehemently opposing any recognition of crypto over the years on a slew of factors, primarily stemming from the financial stability concerns.
     "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," Nagaraju said speaking at an event organised by SBI.
     In the comments that come amid a handsome rise in the value of some of the cryptocurrencies following the election of Donald Trump as the next US President, Nagaraju said his computer science graduate sons also call it a "suspect scheme" and he refers to them.
     "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," Nagaraju added.
     The government has been undecided on its stance on the subject over the years which saw handsome growth in market value, but has started taxing gains made from such asset sales heavily, which has made the industry believe it has secured some legitimacy.
     Amid concerns over quality in the micro-lending portfolios, Nagaraju asked micro finance companies to not be "reckless" in their lending calls.
     A women's self-help group has to be operational for at least six months and should have its business model in place before a call on lending is taken, he said.
     He also said that the banking community will have to work on "climate proofing" infrastructure finance on priority.
     The DFS secretary said India does not have a sufficient number of women on boards of state-run lenders, and added that the government would like to work on improving this aspect.
     He added that the government wants at least one bank to be among the top ten globally by asset size.
     SBI's managing director Ashwini Tewari said the internal target set by the top management is to take the country's largest lender into the top-10 by market capitalisation, but did not share a timeline for the same.
     Speaking at the same event, Union Revenue Secretary Sanjay Malhotra said there are some wrinkles in the Goods and Services Tax system, and the government is working to iron them out.
     He also added that the GST Appellate Tribunals will be in place by the end of the current fiscal year.
     Work is on to curb bogus refunds and wrong input tax credit, he added.

(This story has not been edited by THE WEEK and is auto-generated from PTI)