The Reserve Bank of India (RBI) has announced it will not adopt the U.S. GENIUS Act or G7 models for stablecoin regulation. RBI Deputy Governor T. Rabi Sankar highlighted the risks posed by stablecoins, particularly those pegged to the U.S. dollar, to India's monetary sovereignty and financial stability. He warned of potential currency substitution and 'dollarization,' which could undermine monetary policy transmission. RBI emphasized that India's existing payment systems, such as UPI, RTGS, and NEFT, are sufficiently efficient, rendering stablecoins unnecessary. The central bank reiterated its focus on promoting a central bank digital currency (CBDC), the digital rupee, over private stablecoins.