The governor of the Reserve Bank of India (RBI), Shaktikanta Das, has clarified the central bankâ€™s position regarding cryptocurrency. His statements followed a notice published by the RBI telling banks that its crypto banking restriction is no longer valid and cannot be cited.
RBI Still Has Major Concerns About Crypto
RBI Governor Shaktikanta Das clarified the central bankâ€™s position on cryptocurrency In a post monetary policy press meeting Friday. Emphasizing that â€œThere is no change in RBIâ€™s positionâ€ regarding cryptocurrencies, Das said:
This clarification followed a notice posted by the RBI telling banks that its April 2018 circular which banned banks from dealing with cryptocurrencies is no longer valid and cannot be cited or quoted.
The circular was quashed by the Indian supreme court in March last year. However, several banks are reportedly still citing the circular as the reason to stop providing services to crypto businesses and traders.
Governor Das continued:
HDFC Bank, a leading private bank in India with 5,608 branches and 16,087 ATMs, had been sending letters to its customers threatening to close their accounts due to crypto transactions. However, local media reported that the bank retracted its communication to customers after the RBI clarified its position.
The bank also put out a report recently stating, â€œWe think it is just a matter of time before Indian investors have legal access to crypto plays.â€
Meanwhile, the Indian government is still working on the countryâ€™s crypto bill. The existing bill, which was supposed to be introduced during the Budget session of parliament, proposes a ban on cryptocurrencies. However, the government is reportedly setting up an expert panel to re-evaluate the recommendations in the bill.
What do you think about the RBI governorâ€™s clarification on cryptocurrency? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.