Wait...
  1. Home >
  2. Export Import News >
  3. Economy News >
  4. Banned cryptocurrency to uphold integrity of banking system: RBI >
  5. Banned cryptocurrency to uphold integrity of banking system: RBI

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Banned cryptocurrency to uphold integrity of banking system: RBI.


Date: 23-01-2020
Subject: Banned cryptocurrency to uphold integrity of banking system: RBI
NEW DELHI: The Reserve Bank of India on Wednesday defended in the Supreme Court its 2018 circular directing banks to desist from dealing in any transactions involving cryptocurrencies, insisting that it had always been consistent in its opposition to allowing any other payments systems and undermining the integrity of the banking system.

The central bank, through senior advocate Shyam Divan, argued that though there was no formal ban on cryptocurrencies under any law in existence in India, it had consistently been warning all those dealing with virtual currencies of the risks inherent in them.

The RBI circular of 2018, he said, was part of a conscious policy decision of the regulator to ensure that the banking system was not compromised by any other payment system involving cryptocurrencies, including bitcoins which showed extreme “volatility”.

He was arguing before a three judge bench led by Justice RF Nariman, which is hearing petitions filed by currency exchanges dealing with bitcoins. Justices Aniruddha Bose and V Ramasubramanian are also part of the bench.

The lawyer dubbed the 2018 circular as “very proportionate and calibrated”.

Currency exchanges had argued that the RBI ban on accessing banking channels was beyond its remit. Arguments will continue on Thursday.

The Internet and Mobile Association of India, representing various cryptocurrency exchanges, had at the last hearing argued that trading in cryptocurrencies in the absence of a law banning those was a “legitimate” business activity under the Constitution. The RBI could not have denied them access to banking channels to carry on such business, it said.

Advocate Ashim Sood had argued that cryptocurrencies were more like “commodities” rather than currency, and that it was beyond the RBI’s jurisdiction to regulate the field.

The RBI had in a circular issued on April 6, 2018, directed that all entities regulated by it shall not deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling those.

Regulated entities that were already providing such services were told to exit the relationship within three months.

The RBI had earlier issued circulars on December 24, 2013; February 1, 2017 and December 5, 2017, cautioning users, holders and traders of virtual currencies, including bitcoins, regarding various risks associated in dealing with such virtual currencies. The April 6 circular was later challenged in the top court.

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 01-04-2020
Notification No.37/2020 - Customs (N.T.)
Exchange Rates Notification No.37/2020-Custom (NT) dated 01.04.2020 - reg.

Date: 01-04-2020
A. P. (DIR Series) Circular No. 27
Export of Goods and Services- Realisation and Repatriation of Export Proceeds-Relaxation

Date: 01-04-2020
A.P. (DIR Series) Circular No.26
Exim Bank's Government of India supported Line of Credit (LoC) of USD 161.36 million to the Government of the Republic of Burundi

Date: 31-03-2020
Notification No. 36/2020-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seed, Areca nut, Gold & Silver - reg.

Date: 31-03-2020
Notification No. 58/2015-2020
Amendment in import policy of Iron & Steel and incorporation of policy condition in Chapter 72, 73 and 86 of ITC (HS), 2017, Schedule – I (Import Policy).

Date: 31-03-2020
Notification No. 57/2015-2020-DGFT
Extension of Foreign Trade Policy 2015-2020 till 31.03.2021

Date: 31-03-2020
Notification No. 56/2015-2020
Export of Red Sanders wood by Government of Andhra Pradesh and Directorate of Revenue Intelligence - Extension of time regarding.

Date: 30-03-2020
Notification No. 55/2015-2020
Amendment in Export Policy of Animal By-Products.

Date: 30-03-2020
A.P. (DIR Series) Circular No. 25
‘Fully Accessible Route’ for Investment by Non-residents in Government Securities

Date: 30-03-2020
A.P. (DIR Series) Circular No. 24
Investment by Foreign Portfolio Investors (FPI): Investment limits



Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001