A recent proposal sent to RBI has requested the trade of cryptocurrency through banks. It brought this proposal to the forefront, posting the case for the Central Bank’s circular denial. The circular had earlier requested to allow the facilitation and regulation of trade in cryptocurrencies. Banks have collectively sent a letter to the union finance secretary and the RBI, requesting the trade of cryptocurrency.
Supreme Court Verdict
Customers are approaching banks to allow them to trade in cryptocurrency. Banks have verbally stated that the approval of RBI is the only wait. However, some investors believe that RBI will not be instructing banks to support the Crypto industry. Earlier, a Supreme Court verdict had stated that the RBI cannot, in any case, allowe cryptocurrency trade through direct bank operations. Banks, who had earlier submitted a plea to allow the cryptocurrency to trade, are now waiting for RBI’s direction. The security of the cryptocurrency world and the use of money for traceability is a high risk.
Bankers, in some cases, have also stated that RBI’s decision will provide clarity on the matter. Workers of domestic banks have suggested a supervisory mechanism that will govern cryptocurrency. Of recent reports, the Reserve Bank of India is in the process of filing a review on the verdict of the supreme court. This review is to get a clear idea if the supreme court’s verdict is true and that the cryptocurrency nature will originally pose a threat to the Indian banking system. The verdict released by the Supreme Court on the 4th of March, allowed Crypto exchanges to process the deposit and withdrawal of rupee.