Creation, trading of bitcoins not authorised: Meghwal

The creation and trading of virtual currency, including bitcoins, as a medium for payment are not authorised by RBI, Parliament was informed today.
RBI has issued a cautionary advice in December 2013 cautioning the users, holders and traders of virtual currencies, including bitcoins, about operational, legal and customer protection and security thread risks, Minister of State for Finance Arjun Ram Meghwal said in a written reply to the Lok Sabha.
"The creation, trading or usage of virtual currencies, including bitcoins, as a medium for payment are not authorised by any central bank or monetary authority," he said.
Replying to another query, Minister of State for Finance Santosh Kumar Gangwar said the Department of Financial Services has conveyed its approval for compassionate appointment in PSBs on the lines of the central government in August 2014.

Accordingly, Indian Banks' Association (IBA) has formulated a scheme of appointment on compassionate ground in PSBs, he said, adding that a clarification was given to PSBs on December 5, 2014, that all PSBs can have both options -- compassionate appointment or payment of lumpsum ex-gratia amount.