RBI’s clarification on cryptocurrency: What it means for investors in India

The Reserve Bank of India has informed all banks and regulated entities that its April 2018 circular should not be referred to caution their customers against trading in cryptocurrencies. The move has been welcomed by cryptocurrency exchanges and traders. Here's why RBI's statement is important for the future of cryptocurrency trade in India.

The Reserve Bank of India (RBI) on Monday came out with an important clarification on cryptocurrency trade. The central bank said that banks cannot refer to its April 2018 circular to caution their customers against trading in cryptocurrencies. The central bank said such references to its earlier circular by banks are “not in order” as it was set aside by the Supreme Court on March 4, 2020. “As such, in view of the order of the Hon’ble Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from,” the RBI statement said.