Blockchain News

RBI Says No Restriction On Crypto Trading Using Indian Banks

The Reserve Bank of India explains that there is no ban on banks lending bank accounts for the cryptocurrency traders.

In a Right to Information (RTI) question raised by Unocoin co-founder Harish Bv, According to a report by Cointelegraph, the central bank explains that there is no ban.

Feedback to RTI query documented on April 25,  On May 22 RBI declared that “As on date, no such prohibition exists, “.

As per the report, most of the banks such as The central bank and other commercial banks I.e State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, and Bank of Baroda have not reacted to queries.

 RBI’s directive was suppressed by the Supreme Court in March, that forbidden entities beyond its jurisdiction from trading in digital currencies.

Just after the apex court declaration, traders had put forward questions that banks were going on with to compel regulations.

“After Supreme Court scrapping RBI’s Ban on crypto and RTI’s reply from RBI, it is clear that there is no need for any blockchain or crypto company to register out of India.”

According to report Harish clarifies that  “Bankers have been saying that they need new RBI circulars mentioning that there are no more restrictions for them to provide bank accounts for crypto businesses. Now, we have received a positive response from the RBI.”

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.