With transactions through cryptocurrencies having a firm grip over businesses abroad, it looks like this means of transaction is all set to hit a brick wall with the latest directive from the Reserve Bank of India. On July 5, 2018, commercial banks across the country announced that they would cease any sort of cryptocurrency transactions as the Central Bank of India has issued a notice for them to do so.
In April, 2018, after reviewing the process of transacting through cryptocurrencies, the Reserve Bank of India issued a directive for such transactions in virtual currencies to be banned in the country. The decision came in view of this sort of transaction having financial irregularities and that the Central Bank views it as a threat to the security of customers as well as the fact that this could be a medium for money laundering and a way to stash away black money.
Not just banks, the Reserve Bank of India has also issued the notice to businesses in the country and even individuals to stop using cryptocurrencies as a means to trade. In short, trade in the form of cryptocurrencies has been stopped as per the directive of the Reserve Bank of India.
The issue was brought forth by the Central Bank of India after several investors in India bought bitcoins for a whopping amount of Rs.10 lakh while other bitcoins were being sold for between Rs.3,000 to lakhs in rupees.
Source Link: Financial Express
Disclaimer: The Reserve Bank of India (RBI) and the Ministry of Finance has frequently cautioned the users, holders and traders of virtual currencies regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with virtual currencies. RBI also further clarified that it has not given any licence/authorisation to any entity/company to operate schemes or deals related to Bitcoin or any virtual currency. RBI has also barred its regulated entities from dealing or providing services to any individual or business entities dealing with cryptocurrency. The Ministry of Finance has also officially stated that virtual currencies are not legal tender or coin.