ICB clarifies regulations as native banks shun crypto

Banks like HDFC and the SBI reportedly cautioned customers in contradiction of crypto, citing the RBI’s quashed crypto circular.

India’s central bank has delivered an authorized notice concerning the detail that local banks are reportedly cautionary customers in contradiction of using cryptocurrencies like BTC.

Published Monday, the sign points out that the RBI is aware of media reports that sure banks have cautioned their customers in contradiction of crypto by mentioning to the RBI’s quashed, 3 year-old circular.

‘Such orientations to the above circular by banks/ regulated objects are not in order as this circular was set sideways by the Hon’ble Supreme Court on March 4, 2020 in the substance of Writ Petition,’ the notice reads, highlighting that the circular is no longer valid and can’t be cited.

Though, banks and other regulated financial institutions can still transmit out customer due diligence procedures connected to Anti-Money Laundering and Know Your Customer values under the Prevention of Money Laundering Act of 2002, the RBI renowned.

The RBI’s statement comes in reply to media reports demanding that some of India’s main banks, like HDFC Bank and the SBI, have cautioned their customers against commerce in digital currencies. Some operators claimed that HDFC Bank cited the RBI’s 2018 order proscription crypto trading in India. The ban was formally overturned in March 2020 by the Supreme Court of India.

The news adds to the usual uncertainty concerning the legal status of crypto in India. Previous this year, anonymous sources demanded that the government was planning a blanket prohibition on crypto.