Cryptocurrency News

Indian central bank clarifies rules as local banks move away from crypto

The central bank of India has issued an official notice about local banks allegedly warning customers to use cryptocurrencies like bitcoin.B T c)

Published On Monday, the notice stated that the Reserve Bank of India is aware of media reports that some banks have warned their customers against crypto RBI’s three-year-old circular canceled.

“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Court in the matter of writ petition dated March 4, 2020,” reads the notice, emphasizing that That the circular is no longer valid, and cannot be cited.

However, banks and other regulated financial institutions may still carry out customer due diligence procedures under the Money Laundering Prevention Act 2002 related to anti-money laundering and knowing their customer standards, the RBI noted.

This statement of RBI has come in response to media reports Claiming that Some of the largest banks in India, such as HDFC and State Bank of India, have cautioned their customers against transactions in virtual currencies. Some users claimed that HDFC Bank cited RBI’s 2018 order banning crypto trading in India. The ban was officially Overturned By the Supreme Court of India in March 2020.

The news adds to the current uncertainty about the legal status of crypto in India. Earlier this year, anonymous sources claimed that the government Was planning to impose a complete ban on crypto.