Why India Needs a Tokenisation Bill: MP Raghav Chadha Explains in Parliament

December 16, 2025

New Delhi: Aam Aadmi Party (AAP) Rajya Sabha MP Raghav Chadha has called for a serious policy discussion on blockchain and tokenization in Parliament. He clarified that he himself has not introduced any “tokenization bill,” but urged the central government to introduce a dedicated ‘Tokenization Act’.

Speaking through a Special Mention in the recent Rajya Sabha session, Raghav Chadha stated that India now needs to bring emerging areas like blockchain and on-chain assets into a formal policy framework. He suggested that the government introduce a ‘bespoke tokenization bill’ that includes a regulatory sandbox provision, allowing new technologies to be tested in a safe environment.

Taking reference to UPI, he drew parallels between its potential and the success and inclusive nature in the world of digitization.

Raghav Chadha said that just as UPI democratized digital payments and brought millions into the formal financial system, tokenization can similarly democratize investment and ownership.

Explaining the concept of tokenization, he said it is a financial innovation technology that converts large physical or financial assets into smaller digital tokens. These tokens can then be bought and sold using blockchain technology. This allows any asset to be divided into smaller units, making them accessible to a wider population.

Raghav Chadha told the House,
“Asset tokenization is one of the most innovative technological and financial revolutions of the 21st century,”
and stressed its potential to transform the Indian economy.

He also stated that ownership of large and high-value assets has so far been largely limited to the wealthy and privileged, but tokenization can change this. It will enable middle-class investors to invest in assets that were previously beyond their reach.

Raghav Chadha argued that a clear legal framework through a tokenization bill would foster innovation, ensure investor protection, and accelerate inclusive economic growth. He urged the government to initiate formal policy discussions and introduce legislation that would ensure India remains competitive in the rapidly evolving global digital economy.

Raghav Chadha’s Key Arguments:

Why does India need a 𝗧𝗼𝗸𝗲𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗕𝗶𝗹𝗹?
I explained in Parliament today. pic.twitter.com/Ucw395cWpg

— Raghav Chadha (@raghav_chadha) December 16, 2025

1. Boosting Domestic Investment
Raghav Chadha said that a tokenization law would encourage domestic investment in India. This would provide Indian citizens with modern and secure investment opportunities within the country.

2. Enabling Fractional Ownership
He explained that blockchain-based tokenization would enable fractional ownership of expensive assets—such as real estate, infrastructure, and other assets. This would open up investment opportunities in large assets even for small investors.

3. Modernizing the Economy
Chadha emphasized that the world is rapidly moving towards digital assets and blockchain. If India does not adopt this global trend, it risks falling behind in the competition. Tokenization will increase productivity and give a new impetus to economic growth.

4. Initiating Formal Policy Discussion in Parliament
Through the Special Mention, Raghav Chadha aims to ensure that this topic is not limited to technical or private discussions, but becomes part of the government’s policy agenda.

Raghav Chadha said that the time has come for India to develop robust laws and a clear regulatory framework for the economy of the future, so that the benefits of technology reach the common citizen.