RBI cautions users against use of virtual currencies, including Bitcoin and Dogecoin
http://tech.firstpost.com/news-analysis/rbi-cautions-users-against-use-of-virtual-currencies-including-bitcoin-and-dogecoin-361053.html
Promotion of virtual transactions, and a shift towards a less cash economy is a key part in the Government’s efforts for cleaning up the system and weed out corruption and black money.
The JAM trinity, which is made up of the Pradhan Mantri Jan Dhan Yojna, the Aadhaar card and the spread for mobile connectivity were important precursors to the demonetisation. A question was raised in the Rajya Sabha over the status of virtual currencies in the country, including cryptocurrencies such as Bitcoin.
Bitcoin is not controlled by any central authority, and as such is seen as a hedge in times of financial instability. Arjun Ram Meghwal, Minister of State in the Ministry of Finance, in a written reply to the Rajya Sabha pointed out that the RBI had cautioned citizens against the use of virtual currencies, including Bitcoin, and that as such Bitcoin has not been authorised in India. The creation of, trading in virtual currencies enjoy no legal protection mechanisms. The users are potentially exposed to financial, legal and operational risks. As the website update mentioned
" The virtual currencies are stored in digital wallets, that can be compromised in various ways including hacks, malware, and loss of password. Once lost, the virtual currencies are permanently lost as there are no legal mechanisms to address the loss. Virtual currencies can also be stored on physical media, such as USB drives and hard drives. These drives can be physically stolen, or damaged, or lost, which would lead to permanent loss of the virtual currency stored in the physical storage medium.
There is no way to report problems, settle disputes or charge banks. The transactions for virtual currencies takes place using a peer-to-peer system, with no regulation from an authorised central agency. Without these support systems in place, users are particularly vulnerable to spam, phishing and social engineering approaches to manipulate users into giving up their cash. "
I hope this rule worked for Gaypal aka PayPal .
