Big Relief For Crypto? RBI Asks Banks To Not Block Transactions Based On Invalid Circular
May 31, 2021
The April 6, 2018 circular that asked banks to block crypto payments is no longer valid and must not be cited, says the Central BankIn a relief to the Indian crypto industry, the Reserve Bank of India has finally issued a clarification over banks blocking crypto transactions citing RBI’s notification.A year after the Supreme Court’s verdict, leading banks — HDFC Bank, ICICI Bank, State Bank of India and many others continue to block crypto transactions citing RBI’s long-standing stance on cryptocurrency.Why The RBI Had To Issue ClarificationOn April 6, 2018, the RBI had issued circular asking banks and other RBI-regulated entities to stop extending any banking services to crypto startups.In the last month, it was widely reported that the RBI had informally asked banks to curb crypto transactions.An RBI officer had told Inc42, that the RBI is free to take these steps to curb the massive conversions of INR into crypto. Disclaimer: This story is auto-aggregated & summarized by a computer program and has not been created by StartupAround.