RBI has sent letters to banks asking them to take precautions and keep a close watch on financial transactions of companies and exchanges related to cryptosystems. Two information sources have given this information to ET. The Reserve Bank has not issued any instructions to banks to stop dealing with such companies and exchanges but it can be considered formal because no bank would want to go against the RBI. Banking regulators both the RBI and the central government have issued warnings to the crypto people on several occasions.
In the official letter sent to the banks, the RBI has asked them to take precautions while dealing with cryptocurrency and bitcoin exchanges. According to sources, banks have been told that they understand the business models of Bitcoins before dealing with them. "The RBI has asked us to investigate the business of these crypto people," the banker said. But there is nothing like this in the letter since it seems that deal with betoken is banned. From the point of view of RBI, some questions arise in our mind too. It is enough to keep us away from this business.
In the letter, banks have been asked to monitor account holders who have been transiting in the cryptocurrency. The reply to the emails sent to know this was not received until the news was written. The RBI has warned those who use virtual currency on various occasions about the economic and financial risk associated with cryptocurrency like bitcoins. RBI has also issued an explanation that it has not given any company license to operate or deal in bitcoin or any virtual currency. South Korea and China have cracked down on the illegal use of virtual currency here.
ET (Economic Times) had published the news last week that State Bank, Axis Bank, HDFC Bank, ICICI Bank and Yes Bank suspended some of the accounts of some big bitcoin exchanges in India due to suspicious transactions. The second banking source said, "If the bitcoin business dipped and the money of the people drowned, the credit of the bank would be in danger." If there is no framework for this, how can the bank avoid it? The RBI is currently thinking about this and the bank is in the mood to wait. "
Knowledgeable sources of the case said that top-of-the-art crypto corporation is planning to contact the government by uniting about issues such as taxation of the tax officials and the problems of banks. Senior advocate, working with at least two exchanges, said, "The cryptocurrencies exchange has come into consideration on the next step, which involves cleansing of the court."
Let's hope so good...