RBI bans cryptocurrencies, prohibit banks from virtual currency dealings


The Reserve Bank of India (RBI) has prohibited the banks and financial institutions from dealing with cryptocurrencies and reminded them regarding the repeated warnings associated with the risks.

“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs (virtual currencies),” said the RBI in its official communiqué.

The banking regulator is expected to issue a warning soon in this regard. It is also going to provide three –month buffer time to the entities to detach themselves with the business and associations pertaining to virtual currencies.

While presenting the Budget 2018, Union Finance Minister Arun Jaitley said cryptocurrency is not legal in India and the Centre is discouraging its use in the country.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.