Reserve Bank of India Governor Shaktikanta Das repeated A statement on monetary policy followed by a recent press conference emphasized the institution’s position:
“We have major concerns regarding cryptocurrency, which we have conveyed to the government.”
The governor’s remarks come after the Reserve Bank of India was prompted to clarify Banks should not continue to cite RBI’s now-defunct circular as grounds for denial of services to crypto firms. Recent media reports suggested that the document was still providing an excuse for banks reluctant to deal with entities from the crypto space, despite the fact that the Supreme Court ruled the ban disproportionate and knocked it down in march 2020.
Das told reporters that the central bank wants to “straighten the record” and “that particular RBI circular has been set aside. Hence it is not correct to refer to that circular.” Notwithstanding its repeal, Banks continue to be reluctant To open the industry amidst a general atmosphere of uncertainty about the future of crypto in India. This year, an unnamed source claiming to be a senior official in India’s finance ministry suggested a long-discussed blanket ban on cryptocurrency may be applicable in the country.
Keen to clarify the position of the circular, Das emphasized that banks should continue to follow due diligence measures when dealing with cryptocurrency-related customers. The central bank has repeatedly pointed to the risks money laundering and terrorism financing It is feared that the use of cryptocurrency may be facilitated. In parallel, it is exploring possible Requirement of digital currency issued by central bank.