India’s central bank, the Reserve Bank of India (RBI), has verified that there’s no longer any sort of banking ban on crypto exchanges, organizations, or traders. This follows the supreme court call to quash the RBI circular prohibiting banks from offering services to their clients dealing in cryptocurrencies. The ban continued for almost 2 years.
No Banking Ban
The Reserve Bank of India has verified in response to a Right to Information (RTI) petition that there’s presently no banking ban over the crypto industry. After many hearings, the RBI circular that banned banks from offering services to anybody or maybe any businesses dealing in cryptocurrencies in March was quashed by the Supreme Court of India. The circular was released in April 2018. Shortly after the court’s verdict, cryptocurrency exchanges started bringing back INR structure and support after approximately 2 years without it.
Nevertheless, several banks are reportedly nonetheless declining to open accounts for crypto exchanges, claiming that they’re patiently waiting for further instructions from the RBI concerning cryptocurrency. “Bankers have already been saying that they require fresh RBI circulars mentioning that there are no more constraints for them to provide bank accounts for crypto businesses” Harish was quoted by the Economic Times as saying. “Now, we’ve gotten an optimistic reaction from the RBI.” Nevertheless, the central bank isn’t required to inform commercial banks of the supreme court’s ruling. The RBI also earlier confirmed that cryptocurrencies, just like bitcoin, are authorized in India.
After the banking restriction was lifted, many cryptocurrency exchanges started seeing 10X trading volumes along with a considerable increase in new users. While economists have forecasted probably the worst recession perhaps for India, the crypto sector is booming despite the extended nationwide lockdown. Peer-to-peer (P2P) marketplaces for bitcoin are maturing in India, brand-new crypto exchanges are launching and new investments are streaming in.