India Central Bank Says It Hasn’t Banned Crypto

Marco Green
January 23, 2020

On Monday, the central board disclosed the minutes to its 579th central board meeting held on 11 October 2020.

Specifically, the RBI says that virtual currencies are not prohibited, rather banks and other financial services have been directed to not facilitate crypto activity, and a list of entities associated with cryptocurrency services have been banned.

The board also accepted a plethora of proposals, and review of various departments, proposed by various executive directors in the central bank.

The latest announcement from the RBI will, however, come as a boost for the sector.

There were four places where the minutes were blacked out, which the RBI said it did so in accordance with rules that permit severing certain information under the RTI Act.

The Delhi High Court adjourned the hearing on a petition seeking enhancement of withdrawal limits in Punjab and Maharashtra Co-operative (PMC) Bank.

The apex bank also revealed that henceforth, it will release the minutes of board meetings on its website within two weeks from the date of its confirmation and after the same is signed by the chairman.

"The steps taken by RBI are not arbitrarily in nature".

So far, the RBI only used to share the details of the minutes of its board meetings in response to queries under the Right to Information (RTI) Act. Other members include Bharat Narotam Doshi, Sudhir Mankad, Ashok Gulati, Manish Sabharwal, Prasanna Kumar Mohanty, Satish Kashinath Marathe, Dilip S Shanghvi, Swaminathan Gurumurthy, Revathy Iyer, Atanu Chakraborty, Sachin Chaturvedi, Rajiv Kumar and Natarajan Chandrasekaran. In August past year, resolving a contentious issues, the RBI Central Board made a decision to transfer a record surplus - Rs 1.76 lakh crore - to the government.

The silver lining is that this odd regulatory stance, where there are no exchanges allowed but crypto is legal, has turned India into one of the only remaining countries in the world where the crypto space is like a wild west, with any individual having the potential to start a lucrative crypto dealing business. This battle turned bitter in 2018 when Urjit Patel was the RBI Governor and Subhash Garg was the Secretary, Economic Affairs in the Finance Ministry. The board then set up a committee headed by Bimal Jalan to settle the issue.

Other reports by Click Lancashire

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