RBI Circular to Commercial and Co-operative Banks, Payments Banks, Small Finance Banks, Non-Bank Financial Companies (NBFC) and Payment System Providers in conjunction with an RBI Press Realease on April 5, 2018, Statement on Developmental and Regulatory Policies. The crux of this circular includes the following:
- Reserve Bank has repeatedly released notices to caution users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies.
- In view of the associated risks, it has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling virtual currencies. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase/ sale of virtual currencies.
- Regulated entities which already provide such services shall exit the relationship within three months from the date of this circular.