The Reserve Bank of India (RBI), the central bank of the country, has just said that banks cannot caution their customers against dealing with cryptocurrencies.
According to an official statement shared by the bank yesterday, banks doing so making reference to a RBI circular dated April 6, 2018, are making a mistake, since the circular is no longer applicable. The institution claims the circular was set aside by a Supreme Court on March 4.
The document in question prevented banks as well as other financial institutions from offering their services to customers dealing with cryptos, however, the rule was overturned last year by the Supreme Court of the country.
Now that the central bank of the country has clarified that banks can actually offer their services to crypto-related customers, the scenario is a lot different. According to Nischal Shetty, CEO of Binance-owned crypto exchange WazirX:
“This brings in a lot of clarity for banks, which have been on the fence whether they should service the crypto industry or not.”