Budget 2022: RBI to issue digital rupee and 5G spectrum auction in FY23

These announcements could put a damper on the crypto and NFT party.      

Finance Minister Nirmala Sitharaman in her speech announced that Reserve Bank of India (RBI) will be to introducing a ‘digital rupee’ on the back of blockchain and other technology. Regulation and taxation of cryptocurrencies by the government have been the preferred talk of the town over the last few weeks. This progressive step marks a new beginning for the adoption of digital currency by our nation.    

It has also been announced that virtual digital assets i.e. non-fungible tokens (NFTs) will be taxed at 30 per cent. Additionally 1 per cent TDS will be applicable on transfer of virtual digital assets. With non-fungible tokens (NFTs) gaining exponential traction over the last six months and becoming the must-have frenzy globally, this move might become a speed-bump for this high-growth nascent asset class in India.

These announcements could put a damper on the crypto and NFT party.      

In other updates, Life Insurance Corporation's IPO (initial public offering) is also expected shortly. It will be India's biggest IPO to date, with the government aiming to raise up to a whopping Rs 1 lakh crore and make strides towards meeting their divestment target. LIC’s IPO has been a hot topic among the stock market participants.  

Finance Minister has also announced that 5G spectrum auctions would be conducted and rolled out by FY23.   

BSE Telecom index is trading in the green with a marginal gain of 0.36 per cent. The top gainers of the index include Indus Towers, Vodafone Idea, HFCL, ITI, and Sterlite Technologies. Meanwhile, Tata Teleservices Maharashtra, OnMobile Global, and GTPL Hathway turned out to be the top losers.   

Stay tuned for more updates!