The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, has clarified the central bank’s position on cryptocurrency. His testimony followed a notice published by RBI telling banks that their crypto banking restriction is no longer in effect and cannot be quoted.
RBI still has major concerns about crypto
RBI Governor Shaktikanta Das clarified the central bank’s position on cryptocurrency in a press conference after monetary policy on Friday. Stressing that “RBI’s position on cryptocurrencies remains unchanged,” Das said:
Regarding the position of the RBI, we have major concerns about the cryptocurrencies that we have submitted to the government. And when it comes to investors, it is up to every investor to do their own due diligence and be very careful and circumspect.
This clarification followed a notice from RBI, in which the banks were informed that their circular from April 2018, which prohibited banks from handling cryptocurrencies, is no longer valid and can no longer be quoted or quoted.
The circular was overturned by the Indian Supreme Court last March. However, according to reports, several banks are still citing the circular as a reason to stop providing services to crypto companies and traders.
Governor Das continued:
As you know, the Supreme Court overturned the RBI circular issued in 2018, but it was surprising that some banks referred to this circular in their correspondence with their customers. Because of this, we have had to make it clear that the circular in question has been set aside so that it is not at all correct to refer to this circular.
HDFC Bank, a leading private bank in India with 5,608 branches and 16,087 ATMs, had sent letters to its customers threatening to close their accounts due to crypto transactions. However, local media reported that the bank withdrew its communications to clients after RBI clarified its position.
The bank also recently released a report stating, “We think it is only a matter of time before Indian investors have legal access to crypto games.”
Meanwhile, the Indian government is still working on the country’s crypto bill. The existing bill, which should be introduced during the parliamentary budget session, proposes a ban on cryptocurrencies. However, the government is reportedly setting up a panel of experts to reevaluate the recommendations of the bill.
What do you think of the RBI governor’s clarification on cryptocurrency? Let us know in the comment section below.
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