[BREAKING] RBI issues notification for transactions in Virtual Currencies (VC)

Today the Reserve Bank of India (RBI) releases a notification for transactions in virtual currencies. According to the official notification, banks/ regulated entities that are citing RBI circular DBR.No.BP.BC.104/08.13.102/2017-18 dated April 06, 2018, can’t do it now as the circular is no longer valid.

As per the official notification, “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 on March 04, 2020, in the matter of Writ Petition (Civil) No.528 of 2018 (Internet and Mobile Association of India v. Reserve Bank of India).”

“As such, in view of the order of the Hon’ble Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.”

Sumit Gupta, Co-founder and CEO of CoinDCX tweets, “This is great news directly coming from RBI. RBI clarified the stand around the old circular which was set aside by the honorable Supreme Court. Simply put this is a testament, that banks cannot stop people from investing in crypto.”

Balajis, tweets “Good news! The Reserve Bank of India is directing Indian banks to stop deplatforming crypto customers. The ruling these risk-averse banks were referencing is now officially “set aside” and “no longer valid”.

Siddhartha, the COO of WazirX, tweets, “A very important clarification by RBI. There are still some banks that are citing the 2018 circular of Banking ban against crypto businesses or holders. Well, that is no longer valid after the judgment was passed by the Supreme court.”

Really, this is great news for the Indian cryptocurrency exchange as they were facing bank deposit and withdrawal issue for the last many days.