Express News Service
NEW DELHI: In a major relief to crypto enthusiasts, the Reserve Bank of India (RBI) on Monday clarified that banks cannot shun transactions citing its 2018 circular as it is no longer “valid”. The clarification comes in the wake of banks denying services to customers dealing with virtual currencies. Some, including HDFC Bank and State Bank of India (SBI), have even warned users of account suspension if trading continues.
“The 2018 circular (on cryptocurrencies) was set aside by the Supreme Court on March 4, 2020. As such, the circular is no longer valid from the date of the judgement, and therefore cannot be cited or quoted from,” RBI said in a circular. The regulator, however, advised banks to continue doing due diligence of customers on any crypto-related dealings along with ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances.