Central bank of india clarifies on 2018 cryptocurrency circular, asks banks to carry out customer due diligence

The Reserve Bank of India (RBI) on May 31 clarified that banks and other regulated entities cannot cite its 2018 circular on cryptocurrencies as it has been set aside by the Supreme Court (SC) in March, 2020. The circular is not valid from the date of the SC order and cannot be cited or quoted from, the RBI said.

"This notification clearly brings in clarity that RBI hasn’t asked any bank to stop services. And doing due diligence on a business is what banks do for all the businesses," said Nischal Shetty, founder and CEO, WazirX.

Commenting on the circular, Sandeep Naliwal, Polygon, said, "This is very positive for the ecosystem and it feels like overall consensus within the government and regulatory bodies is against stifling innovation and growth in the crypto ecosystem in India."

For all cyrpto participants i think this is a great news as india has lot of young and tech savvy people that will come in the market later or soon.