RBI circular on cryptocurrency (Circular No RBI/2021-22/45 Dt 31st May 2021)

1. RBI  in its  Circular No RBI/2021-22/45 dated 31st May 2021  stated that In view of the order of the Supreme Court, the circular banning the use of digital currencies by banks or facilitating customers to deal in digital currencies is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.

2. State Bank of India and HDFC Bank had earlier, cautioned their customers against dealing in virtual currencies such as Bitcoin citing the April 2018 order of the RBI.

3. The said April 2018 RBI Circular read as follows: It has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs.

4. The Hon Supreme Court had set aside the above 2018 circular. (Civil No.528 of 2018 (Internet and Mobile Association of India vs Reserve Bank of India)

Click on the link to download the RBI Circular No RBI/2021-22/45 dated 31st May 2021