Banks, other entities can’t cite 2018 order on cryptocurrencies: RBI

Banks, other entities can't cite 2018 order on cryptocurrencies: RBI
RBI Twittter

The Reserve Bank of India (RBI) Tuesday cleared the air on cryptocurrencies.

It clarified that banks and other entities cannot cite its 2018 order on virtual currencies. Moreover, the order has been set aside by the Supreme Court in 2020.

The clarification from the RBI is also a major sign of relief for all investors and crypto exchanges in India.

RBI in a notification said, “It has come to our attention through media reports that certain banks/ regulated entities have cautioned their customers against dealing in virtual currencies by making a reference to the RBI circular DBR.No.BP.BC.104/08.13.102/2017-18 dated April 06, 2018.

Such references to the above circular by banks/ regulated entities are not in order as this circular was set aside by the Hon’ble Supreme Court on March 04, 2020 in the matter of Writ Petition (Civil) No.528 of 2018 (Internet and Mobile Association of India v. Reserve Bank of India).”

This latest directive from the RBI comes as some banks citing the circular are cautioning customers against dealing in virtual currencies.

The circular is for all commercial and co-operative banks, payments banks, small finance banks, NBFCs and others.

Earlier, HDFC Bank and SBI had also cautioned their customers against dealing in virtual currencies such as bitcoin.

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