After a noticeable increase in media hype towards the possible ban of cryptocurrencies in India and its possible official approval, the Central Bank of India broke its silence and asked banks not to cite the circular What happened in 2018 He had been banned from doing business with crypto companies, and reminded banks that the country’s Supreme Court overturned the ban last year.

In a circular issued in April 2018, the Reserve Bank of India said that banks cannot deal with or settle any individual or commercial entities dealing with or settling digital currencies.

Last March, India’s Supreme Court ruled that the central bank’s circular had no weight and that banks could do business with crypto firms if they so desired.

Read:Swift launches a new product to compete with Ripple

Despite the clear and frank judgment, major Indian banks continue to ban cryptocurrency related transactions.

Indian cryptocurrency exchanges continue to challenge the Reserve Bank of India.

Last Friday, several trading platforms threatened to take the Reserve Bank of India to the Supreme Court after it emerged earlier this month that the Reserve Bank of India informally asked banks to cut ties with crypto firms.

Finally, the Reserve Bank of India (RBI) acquiesced and fulfilled the requirements for dealing with cryptocurrencies.

Mr. Shrimohan Yadav, General Manager, Reserve Bank of India said:

In light of the esteemed Supreme Court’s order, the circular is no longer valid from the date of the Supreme Court ruling, and therefore cannot be cited or quoted.

While Mr. Siddharth Sujani, CEO of Indian Crypto Intelligence Corporation (CREBACO), stated:

Today’s notice has fulfilled a long-awaited formality.

The Reserve Bank of India was trying to save itself from the legal headache caused by the threat of lawsuit.

While the RBI notice said banks can serve any customers who meet their criteria, it discouraged banks to work with crypto firms, and there is no indication that today’s notice will change much at all.

Read:“SEC” agrees to Ripple’s request to revise two documents before publishing them in public…Details here

Zakhil Suresh, founder of SuperStox crypto trading simulator commented:

Several bank managers told me that they do not allow cryptocurrency as per their internal compliance policy and not because of the RBI.

Read:The Central Bank of Iran announces a ban on cryptocurrency trading in Iran

Suresh added:

Banking policies have already hurt the industry.

Even employees’ bank accounts have been frozen for receiving some funds from cryptocurrency exchanges.

Sojani expects that smaller banks may now allow customers to use cryptocurrencies, adding:

This is better than nothing.

It is worth noting that small banks often have complex APIs which users need to integrate with cryptocurrency exchanges.

But if no major banks do business with crypto companies, cryptocurrency exchanges will remain stuck.

Read also:

Is the crypto market still affected by what Elon Musk says?

Learn the story of a nurse who lost her life savings in a cryptocurrency scam