July 25, 2021

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Reserve Bank of India Clarifies That There Is No Ban on Cryptocurrencies

The Reserve Bank of India has clarified its stance on cryptocurrencies, claiming that there is no ban on banking services for accounts that deal with crypto.

Source: u.today

It also adds that banking institutions can carry out due diligence processes for customers that are engaged with digital assets.

Over the past weeks, major banks like HDFC Bank and SBI Card officially cautioned their customers against conducting cryptocurrency transactions, citing the RBI’s circular from 2018.

However, the central bank points to the fact that the circular is no longer valid:

As such, in view of the order of the Hon’ble Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.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 reported by U.Today, the infamous crypto ban—which prohibited banks to deal with the crypto industry—was quashed by the Supreme Court back in March 2020.