The Reserve Bank of India (RBI) issued an important clarification on cryptocurrencies on Monday, stating that banks cannot refer to its April 2018 notice to warn its customers not to conduct cryptocurrency transactions. The RBI clarification was made after the National Bank of India and HDFC. The bank used the April 2018 RBI directive as an excuse to warn its customers not to trade virtual currencies such as Bitcoin. The bank also warned customers that failure to comply with this requirement may result in their card being cancelled or frozen. The Reserve Bank of India has no choice but to allow it. After the Supreme Court lifted the bank ban on March 4, 2020 last year, the Reserve Bank of India stepped in and urged the bank to stop notoriety.
“According to the Supreme Court’s ruling, the notice is no longer valid at the time of the Supreme Court’s ruling and therefore cannot be cited or quoted,” the Reserve Bank of India said in a statement to the bank. The government is now drafting rules to prohibit or regulate cryptocurrency transactions in the country, and the clarification from the Reserve Bank of India, which is developing its own virtual currency, is expected to help customers investing in cryptocurrencies. For Indians who invest in cryptocurrencies such as Bitcoin and Ethereum, the transition of the Reserve Bank of India will be a good respite. It is estimated that the funds that have been invested in cryptocurrencies are about 10 trillion rupees.
RBI’s position on cryptocurrencies
RBI, which refuses to use virtual cryptocurrencies, has repeatedly warned against using such currencies in the past, stating that RBI-regulated companies will not negotiate with venture capital and will not provide services that facilitate interaction with individuals or companies. Liquidation of the United Kingdom. The Bank of India’s position in 2018 considered the risks associated with cryptocurrencies. The Reserve Bank of India (RBI) has now announced that it is preparing to launch its own digital currency. “The central bank’s digital currency is under development. The RBI team is conducting research from a technical and procedural perspective,” Governor Shaktikanta Das said recently.
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