No Ban on Cryptocurrency in India says RBI

The Reserve Bank of India has confirmed in response to a Right to Information (RTI) request that there is currently no banking ban on the crypto industry.

The RTI query was filed on April 25 by B.V. Harish, co-founder of Unocoin, a major Indian cryptocurrency exchange. He asked whether the RBI has “prohibited any banks from providing the bank accounts for crypto exchanges, companies or crypto traders.” The RBI replied on May 22:

As on date, no such prohibition exists.

After several hearings, the Supreme Court of India quashed the RBI circular which banned banks from providing services to anyone or any businesses dealing in cryptocurrencies in March. The circular was issued in April 2018. Soon after the court’s verdict, cryptocurrency exchanges began bringing back INR support after about two years without it.

Meanwhile, the Indian government is still discussing whether to regulate cryptocurrency; the process has been delayed due to the coronavirus crisis and the nationwide lockdown. In March, it was reported that the Indian government was discussing ways to regulate cryptocurrencies with the central bank.