New Delhi, July 3 -- The Reserve Bank of India (RBI) has told a parliamentary standing committee that virtual digital assets (VDAs) such as cryptocurrencies pose a threat to an emerging economy like India and should not be legalised in the country at this stage, sources aware of the deliberations said.

The committee met representatives of the RBI and the Institute of Chartered Accountants of India (ICAI) to discuss "A Study on Virtual Digital Assets (VDAs) and the Way Forward."

The RBI made its submission before the Parliamentary Standing Committee on Finance, chaired by BJP member Bhartruhari Mahtab, PTI reported.

The central bank told the committee that digital money could be used for illegal activities including terror financing and...