Money Control
Money Control

Analysis | Has RBI really endorsed crypto transactions in India?

Analysis | Has RBI really endorsed crypto transactions in India?
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Reserve Bank of India (RBI) Governor Shaktikanta Das

Hours after major Indian banks, including State Bank of India (SBI) and HDFC Bank sent emails to customers warning against using their services to trade in crypto currencies, the Reserve Bank of India (RBI) has clarified that banks cannot cite the 2018 circular for such communications. This is because, the circular was quashed by the Supreme Court of India on a petition filed by Internet and Mobile Association of India in March, 2020.

The RBI said "Such references to the above circular by banks/ regulated entities are not in order" and "in view of the order of the Hon'ble Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from."

As expected, shortly after the RBI clarification, there has been a flood of reactions from the pro-crypto lobby welcoming the RBI move and interpreting it as a move from the regulator in support of the growth of crypto business in India.

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