RBI Says Banks Can’t Quote 2018 Circular to Restrict Crypto Transactions

RBI Says Banks Can’t Quote 2018 Circular to Restrict Crypto Transactions

In a relief for the crypto community, the Reserve Bank of India (RBI) issued a clarification on Monday stating the commercial banks cannot quote its now-invalid April 2018 crypto banking ban to deny services to customers involved in digital assets dealings.

“It has come to our attention through media reports that certain banks/regulated entities have cautioned their customers against dealing in virtual currencies by making a reference to the RBI circular dated April 06, 2018,” the RBI said in a circular released Monday. “Such references to the above circular by banks/regulated entities are not in order as this circular was set aside by the Hon'ble Supreme Court on March 4, 2020.”

“As such, in view of the order of the Hon'ble Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from,” the statement added.