Reserve bank of India releases positive circular for Cryptocurrencies, asks banks to follow Due Diligence process. I have yesterday made an Article around the same story and here we are with Good news. The news isn’t just good but also a positive side. RBI (Reserve bank of India) today issued a Circular/Notification. In the said notification RBI has asked banks to not use the 2018 circular to warn customers. The Supreme court of India had already set aside the circular issued by RBI.
The Notification is issued for banks/regulated entities. RBI also stated that banks can continue with their Due diligence process that is much required. However, warning customers with old circular isn’t the way to go. The process includes Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT), and obligations.
You can read the recent development – Cryptocurrencies and the Indian FUD: Banks, RBI, Government, and Exchanges. I can say this is a good move and Crypto Industry will take it positively. A positive reply from RBI is a welcome move and will allow better clarity overall. However, I think there is a need for Blanket regulation so that more and more investors have better clarity on this.
This is a start of a bright future for Cryptocurrencies in India, but only time will tell if the actual overall view by Government and RBI.