India prohibited and restricted assets
India is route-based rather than list-based: private INR payment tokens are not publicly codified, security-like rights move into SEBI, and higher-risk wallet patterns trigger stronger FIU controls.
Restricted-asset route map
Restricted-asset overview
India does not publish a single public prohibited-token list for all digital assets in the reviewed materials. The stronger pattern is route-based. The RBI Act, PSS Act, and e₹ FAQ do not disclose a dedicated public route for a private INR payment token.
Security-like tokens are not prohibited merely because they are tokenised, but they cannot stay in a generic VDA bucket if the rights are securities under SCRA s.2(h). They then move into the SEBI, depository, and custody perimeter.
The FIU Guidelines, 2026 explicitly identify higher-risk situations including unhosted-wallet relationships and anonymity-enhanced crypto activity. That is why those routes belong in enhanced-control analysis rather than in an unrestricted VDA-services category.
Restricted-asset matrix
| Asset or pattern | India treatment | Consequence |
|---|---|---|
| Private INR stablecoin | No dedicated public RBI framework located in the reviewed RBI and payment materials. | Do not present as authorised payment value. |
| Foreign stablecoin as payment rail | VDA for tax and AML treatment, but not an authorised payment rail. | Use authorised payment and FX channels for settlement. |
| Security-like token | SCRA s.2(h) and the SEBI stack apply. | Move into securities route. |
| Unhosted-wallet heavy transfer | Higher risk under the FIU Guidelines, 2026. | Enhanced customer due diligence and monitoring. |
| Anonymity-enhanced crypto activity | Higher risk under the FIU Guidelines, 2026. | Stronger controls and escalation expectations. |