Great News: RBI is directing Indian banks to stop deplatforming crypto customers

[rockem5]

From the Reserve Bank of India(RBI): "It has come to our attention through media reports that certain banks/ regulated entities have cautioned their customers against dealing in virtual currencies by making a reference to the RBI circular DBR.No.BP.BC.104/08.13.102/2017-18 dated April 06, 2018. Such references to the above circular by banks/ regulated entities are not in order as this  circular was set aside by the Hon’ble Supreme Court on March 04, 2020 in the matter of Writ Petition (Civil) No.528 of 2018 (Internet and Mobile Association of India v. Reserve Bank of India). As such, in view of the order of the Hon’ble Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.

2. Banks, as well as other entities addressed above, may, however, continue to carry out customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances."

Source: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/45VIRTUALCURRENCIES37FE644EF97F4A36AAB951C73A411E96.PDF

[Kittygalore]

Does this mean that crypto users in India is going to be able to use banks for their crypto related transactions? Because if so that means that India has once again moved in favor of cryptocurrency again and I can feel that they might go the other way again in the near future.

[avikz]

Does this mean that crypto users in India is going to be able to use banks for their crypto related transactions? Because if so that means that India has once again moved in favor of cryptocurrency again and I can feel that they might go the other way again in the near future.

I have just seen the tweet from WazirX CEO Nischal about it. That's a good news! Because Indian banks have been barring crypto exchanges from opening bank account or providing settlements through banks. ICICI and Axis banks were the most infamous on these fronts of banning accounts.

Now coming back to your question. Yes, crypto exchanges in India would be able to continue using the banking service after complying with the existing set of guidelines. No banks will be able to deny service to the crypto exchanges.

But I am still skeptical about the final outcome. The crypto regulation bill is supposed to discussed in the upcoming monsoon parliament session. I am not very positive about it!

[Vishnu.Reang]

Does this mean that crypto users in India is going to be able to use banks for their crypto related transactions? Because if so that means that India has once again moved in favor of cryptocurrency again and I can feel that they might go the other way again in the near future.

From the language used, it almost certainly looks like this. And given that the Reserve Bank of India governor is very close to the ruling party, I have strong suspicion that the government is now looking forward to completely legalize and regulate cryptocurrency. If that happens, then it will be great news for the much harassed crypto community in India. We have suffered a lot over the years. Let's not forget the case of Harish BV, who was arrested and his laptop and mobile phone confiscated just for trying to install a Bitcoin ATM in the city of Bangalore.

[fiulpro]

Does this mean that crypto users in India is going to be able to use banks for their crypto related transactions? Because if so that means that India has once again moved in favor of cryptocurrency again and I can feel that they might go the other way again in the near future.

They are still able to use banks but depends which one you are using , you can very easily use dbs but the only demerit is that the bank is in major cities therefore the rural areas are still afar.

RBI did ban some bank accounts which are trading but then lifted the ban but then again some of the customers always faced issues. It's best to make an international bank account if you can and see for yourself what kind of trading software integrates itself strongly with that particular bank because I have learned to understand for a fact that these people would not stand on their decisions, sooner or later it will be changed, for better or worse who knows ?

Using DBS and Zebpay is something that I am doing since 5-6 years and no probelms on the way, even when there was a ban still the account was not blocked .

[The Cryptovator]

Please avoid posting downloadable links from the forum. And don't copy-paste like this, just make a quote a part of the news and write some your own words as well. However, I read the news in Coindesk an hour ago, there are more details written. No doubts it's a piece of good news for us, not only for Indian citizens. As we can see many merchants suspended crypto payments getaway to accept cryptocurrency. So most likely they could start it again to use since there is no prevention from central banks. So it will keep a role in the overall crypto industry. But I am not so excited, because after a few days we will see another drama like before. I don't know the thoughts of the Indian government.

[buwaytress]

Damage seems to have been done already though from the past couple of years' inconsistency in rulings (RBI was the bad guy before too until the Supreme Court overturned its ban). I don't see (or at least have not read publicised reports)  many of those old exchanges returning to the motherland. Except for Wazir, which was their biggest CEX player, who needed Binance takeover to survive.

[Vishnu.Reang]

Damage seems to have been done already though from the past couple of years' inconsistency in rulings (RBI was the bad guy before too until the Supreme Court overturned its ban). I don't see (or at least have not read publicised reports)  many of those old exchanges returning to the motherland. Except for Wazir, which was their biggest CEX player, who needed Binance takeover to survive.

First let them pass the so called cryptocurrency bill. Only after they table the bill, we will get to know what are the terms and conditions. However, I would still say that for the past few months, a lot of positive news is coming from India. First there was the statement from Anurag Thakur (Minister of State for Finance and Corporate Affairs) about cryptocurrency, and now the document released by the Reserve Bank of India (RBI). I guess the politicians have made their voice clear, sidelining the recommendations made by the Bitcoin-hating bureaucrats.