Reserve Bank of India slams banks after they stop services for crypto users

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In a recent meeting in Mumbai, the Reserve Bank of India (RBI) has warned banks against providing banking services to people who use cryptocurrencies. The central bank said that it is worried about the risks that cryptocurrencies hold for the banks, investors, and the public. The central bank has also hinted that it will take action against banks that continue to provide banking services to people involved in crypto transactions.

The Reserve Bank of India has issued a statement against various banks who have stopped support for cryptocurrency users. The RBI has also ordered banks to provide adequate protection for their customers.

The Reserve Bank of India released a statement last week stating that banks were not allowed to shut accounts of customers who are using crypto to invest in crypto. They also issued a warning against the risks of using crypto, stating that it could be considered as funding of terrorism.. Read more about crypto ban india and let us know what you think.

Reserve Bank of India slams banks after they stop services for crypto users The Reserve Bank of India, the country’s central bank, today issued a new directive after local banks shut down cryptocurrency services for users citing a 2018 directive, an official document said. It has come to our notice that some banks/regulated entities have informed their customers with reference to an RBI circular dated 06. April 2018 warned about trading in virtual currencies, the bank said. customer survey for virtual currency (VC) transactions https://t.co/iAUAx8KpRh – ReserveBankOfIndia (@RBI) May 31, 2021

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He added that such references to the said circular by the banks/regulators were misplaced after the circular was issued on 04. March 2020 was overturned by the Supreme Court. India has a rather shaky relationship with cryptocurrencies, mainly because of the way its financial structure is regulated. The finance ministry, which oversees all financial innovations in the country, seems to be more supportive of cryptocurrencies than the RBI, which controls the issuance and circulation of the rupee and sees cryptocurrencies as a threat. A historic moment for the crypto community in India. A moment of joy for us all. The RBI states that the 2018 circular banning crypto assets was issued on the 4th. March 2020 rejected by Supreme Court pic.twitter.com/TgRISbIp7V – Crypto Kanoon (@cryptokanoon) 31. May 2021 But this time even the RBI has intervened to make its point. In recent months, banks like HDFC, SBI and others have started sending curricula to cryptocurrency-related customers stating that they will not support cryptocurrency transactions like exchanges or wallets. The banks cited the 2018 dictum for their decision, adding that these accounts were at risk of being shut down if they continued to use cryptocurrency services.

KYC requirements for cryptocurrency users remain in place

In its directive today, the RBI said the responsibility for know-your-customer (KYC) policy and other anti-money laundering measures lies with the banks themselves. However, banks and other aforementioned entities may continue to carry out customer screening measures in accordance with KYC, AML and Anti-Terrorism Financing (ATF) norms and the obligations of regulated entities under the Prevention of Money Laundering Act (PMLA), Srimohan Yadav, chief executive officer of the RBI, wrote in the notice. At the same time, the local entrepreneurs felt that the initiative was a step in the right direction. This is a very positive development for the industry as a whole, said Nishal Shetty, founder and CEO of crypto-currency exchange WazirX, in a statement to local publication Economic Times. He added: There is much confusion among banks as to whether they can serve their customers in this sector. This note clarifies the situation. Indian cryptocurrency users are experiencing remarkable relief.

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The Reserve Bank of India has issued a stern warning to banks in the country, warning that they should not let customers use their debit cards to transact in cryptocurrencies. In a statement issued by the Reserve Bank of India (RBI), the central bank said that banks should not allow debit card transactions to be used for virtual currency transactions, as this violates the provisions of the Indian Payments and Settlement Systems Operator’s Act, 2002.. Read more about why would india ban crypto and let us know what you think.

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