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Don't deal with entities related to Bitcoins, RBI tells banks and NBFCs

The RBI has repeatedly cautioned users, holders and traders of virtual currencies, including bitcoins

Press Trust of India 

A copy of bitcoin standing on PC motherboard is seen in this illustration picture. (Photo: Reuters)
Photo: Reuters

The (RBI) on Friday asked banks, non-banking financial companies (NBFCs) and payment service providers to disassociate themselves from entities dealing with virtual currencies, including bitcoins, with immediate effect. The notification comes a day after the central bank in a 'Statement on Developmental and Regulatory Policies' warned of risks associated with virtual currencies.

The has repeatedly cautioned users, holders and traders of virtual currencies, including

The services flagged by the include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, among others.

In his Budget speech on February 1, Minister had said cryptocurrencies were not legal and affirmed to eliminate their usage. Since then, top banks, including HDFC Bank, SBI and CitiBank.

First Published: Sat, April 07 2018. 01:48 IST
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