Responding to a Right to Information Act request, the Central Bank of India – the RBI clarified that there are no restrictions levied on any bank that would prevent them to open accounts of crypto traders and companies. The RTI act is an open-act that requires transparency of information to the questions asked by the general public of the country. The request and the RTI application was registered by Harish BV who happens to be the co-founder of the local crypto exchange called Unocoin. 

In 2018, it was the RBI that released a statement restricting regulated financial organizations to deal with any organization or individuals trading in crypto. Banks had started rolling out warnings with effect to the ban orders. But after that, the ban was lifted by Supreme Court letting the financial organizations continue dealing with such entities in the future. 

The uncertainty surrounding the cryptomarkets is still very apparent because a few banks are still denying service and support to such customers. Lawyer, Mohammed Danish clarified that the Supreme Court order was not applied universally because it did not add to the orders that RBI will issue separate notifications to the bank that they had to comply with the orders. 

Hence in order to ensure that the trader’s interests remain intact and that they do not have to face uncertainty, Harish BV had filed this request on the 25th of April. The RBI got the information request as to whether banks were still prohibited to provide bank accounts to cryptocurrency companies or traders to which RBI was clear that no such prohibition exists currently. 

The banking ban was not a good sign for India’s crypto market as the companies started shifting bases to those nations where regulations were friendly. The companies were operating from India but were trading from elsewhere. Even the most established brands either had to shift or shut shop. 

But now that the RBI stance is crystal clear, the crypto market in India can flourish big time. The acceptance would increase and that would mean exposure to about 1.35 billion potential Indian traders and users. 

Image Source – CompareRemit