RBI tells Indian Banks they cannot stop people from investing in Crypto after HDFC Bank Limited and SBI Card started sending emails to their customers cautioning against dealing in cryptocurrencies or have services curtailed.
After reputed private and public sector banks started sending cautionary emails deterring customers from trading virtual currencies citing an RBI circular from 2018, the Reserve Bank of India put out a clarification.
The RBI circular from 2018, prohibits dealing in cryptocurrency, this was later overturned by the Supreme Court.
RBI has made it clear in its new statement, the 2018 circular no longer stands and cannot be cited in such away. Though it has been recommended that the banks take reasonable steps on money-laundering and KYC, a potential loophole cited in the past when dealing with cryptocurrencies.
The contents of the emails sent by the banks to its customers suggest, the authorities inquired about the customer’s transactions involving digital currencies including Bitcoin.
Both the banks, HDFC and SBI cited the 2018 RBI circular, which has been reversed by the Supreme Court. Customers of other organizations including SBI Cards and Payment Services also sent similar emails to their customers, with a warning to lose its services.
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