Has RBI legitimised cryptocurrencies? Traders, banks think it has

Central bank goes beyond saying that its April circular banning virtual currencies is no longer valid.

The Reserve Bank of India issued a notification on April 6, 2018 asking banks not to deal or to provide services facilitating any person or entity in dealing with or settling with cryptocurrencies (VC), including Bitcoin.

Two years later in March 2020, the court quashed the RBI’s notification following a plea by the Internet and Mobile Association of India (IMAI).

The RBI on Monday--15 months after the Supreme Court order--issued a circular saying its April 2018 order is no longer valid from the date of the court judgement and cannot be cited or quoted by banks to deny service to