Exploring Asset Tokenisation: A Game Changer for India's Financial Landscape
Asset tokenisation: The next financial rail for India?
Mint
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Asset tokenisation is poised to transform India's financial ecosystem by enabling fractional ownership and improving liquidity across asset classes. With over 27 crore mutual fund folios and 18 crore depository accounts, this innovation aims to broaden investor participation and enhance access to previously inaccessible assets.
- 01India's mutual fund sector recorded over 27 crore folios and 18 crore depository accounts as of March 2026.
- 02The Reserve Bank of India has introduced frameworks for card tokenisation and the digital rupee, indicating regulatory support for token-based financial mechanisms.
- 03Banish Dhar, Principal Advisor to the Shapoorji Pallonji Group, emphasizes that tokenisation represents a structural evolution in ownership frameworks.
- 04Tokenisation is expected to foster collaboration between traditional financial institutions and fintech players, enhancing market participation.
- 05Compliance with data localization, KYC, and AML standards will be critical for the success of tokenised systems.
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Asset tokenisation is emerging as a significant development in India's financial ecosystem, reshaping how investors access high-quality assets. With over 27 crore mutual fund folios and 18 crore depository accounts recorded as of March 2026, the growing investor base underscores the need for innovations that enhance accessibility. Tokenisation enables fractional ownership, allowing smaller investors to participate in high-value assets, thus bridging the gap in access. The Reserve Bank of India has initiated frameworks for digital financial systems, including card tokenisation and the digital rupee, reflecting a regulatory comfort with token-based mechanisms. Banish Dhar, Principal Advisor to the Shapoorji Pallonji Group, notes that tokenisation is not merely a technological trend but a structural evolution in ownership frameworks. This innovation is expected to promote collaboration between traditional financial institutions and fintech, enhancing efficiency and user experience. However, the success of tokenised systems will depend on maintaining trust and regulatory integrity, with compliance to data localization and KYC standards being essential. As India strengthens its digital financial infrastructure, asset tokenisation presents an opportunity to deepen markets and support economic growth.
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Asset tokenisation is expected to improve access to investment opportunities for smaller investors, potentially increasing household savings linked to productive investments.
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