On 31 May RBI ( Reserve Bank Of India) tweeted a post on twitter about the notification of virtual currencies used in India regarding banking services.
You can see the official notification by the Reserve Bank of India here.
The notification about virtual currencies (cryptocurrencies) by the RBI has no significance in terms of the regulation system of cryptocurrency use in india.
We can see two paragraphs in the notification by RBI.
In the first paragraph of the notification, RBI clearly explained the matter of RBI ban on banking and Unban because of Supreme Court order.
In the first paragraph RBI clearly mentioned that ” Any bank entities private & non-private can do transactions for the purpose of cryptocurrency use, there is no boundation by RBI for such activities”.
So here RBI clearly says that they are following the order of the Supreme Court perfectly since 2018. And they have not restricted any of the bank authorities regarding cryptocurrency Exchange banking transactions.
In the second paragraph of the notification by RBI, RBI clearly explained that “Banks should understand the standard of their customers and also banks should be careful about the securities of the fund of customers”.
And in the last few lines, RbI clearly said “, Banks should follow every possible action so that people who are using banking services do not violate rules of money use”.
Overall they meant that,” Bank should take care that any customer is not going through money laundering activities or going against the foreign exchange money act.
Why RBI Released Notification About Cryptocurrency On 31 May?
In the present time we can see how much positivity is going in the Indian cryptocurrency users. But still it is a big fact that why RBI released notification about cryptocurrency.
According to social media reports, many people were blaming RBI for the Banking sectors unsupported by the cryptocurrency exchange.
People were blaming the RBI and saying that it is the RBI who is controlling banking services and the RBI doesn’t want to support cryptocurrency use in Indian market.
So maybe it can be a reason to release the notification about banks and cryptocurrency by the Reserve Bank of India.
But here we can’t say this is the 100% true story of RBI to release notification about virtual currencies.
Maybe there can be some other reasons which are unknown for people in India.
And also many people were sharing their experience about the warnings by State Bank of India (SBI) & HDFC Bank in the past week. So there may be chances that these bank authorities were doing something wrong.
And then RBI decided to release the notification for banking sectors officially. So that every bank authority can do their work at best to provide banking services to every Exchange in the proper way.