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

[Tanimariya]

RBI's circular comes as Indian banks warn customers against using their services for crypto trading. 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.” Source