At its first Bi-Monthly Monetary Policy Press Conference for the financial year 2018-2019, Reserve Bank of India (RBI) has asked banks to stop having business relationship with the entities dealing with virtual currencies with immediate effect. Regulated entities which already provide such services are also ordered to end relationship within a period of three months. Some of the banks have already banned buying cryptocurrencies using credit and debit cards. RBI said that Virtual Currencies (VCs) raise concerns of consumer protection, market integrity and money laundering, among others. At the Union Budget 2018 in February, Finance Minister Arun Jaitley said that the Government will take all measures to eliminate the use of crypto-assets in financing illegitimate activities. However, RBI said that it will promote the use of blockchain – a public ledger that serves as the backbone of bitcoin – in financial services for strengthening transparency and improving inclusion. This will be big blow to the those dealing with virtual currencies in India since banks will not allow users to buy cryptocurrency via banks or e-wallets etc. soon. RBI also said that it is mulling introducing a fiat digital currency. " While many central banks are still engaged in the debate, an inter-departmental group has been constituted by the Reserve Bank ...
Thursday 5 April 2018
RBI orders banks to stop services to those dealing in crypto currencies
At its first Bi-Monthly Monetary Policy Press Conference for the financial year 2018-2019, Reserve Bank of India (RBI) has asked banks to stop having business relationship with the entities dealing with virtual currencies with immediate effect. Regulated entities which already provide such services are also ordered to end relationship within a period of three months. Some of the banks have already banned buying cryptocurrencies using credit and debit cards. RBI said that Virtual Currencies (VCs) raise concerns of consumer protection, market integrity and money laundering, among others. At the Union Budget 2018 in February, Finance Minister Arun Jaitley said that the Government will take all measures to eliminate the use of crypto-assets in financing illegitimate activities. However, RBI said that it will promote the use of blockchain – a public ledger that serves as the backbone of bitcoin – in financial services for strengthening transparency and improving inclusion. This will be big blow to the those dealing with virtual currencies in India since banks will not allow users to buy cryptocurrency via banks or e-wallets etc. soon. RBI also said that it is mulling introducing a fiat digital currency. " While many central banks are still engaged in the debate, an inter-departmental group has been constituted by the Reserve Bank ...
