Governor Shaktikanta Das of the Reserve Bank of India or RBI said the recent withdrawal of restriction in 2018 should not be regarded as an anti-crypto stance.

RBI Governor Strengthens Its Anti-Crypto Stance

The governor of the Reserve Bank of India stated today that the bank strengthens its anti-crypto stance toward cryptocurrencies and that the recent withdrawal of a 2018 ban was merely legal housekeeping.

“The RBI’s position has not changed,” Governor Shaktikanta Das stated during an online press conference, according to Bloomberg. He noted that the central bank still has “significant concerns about Bitcoin.”

RBI Informed The Government Of Its Worries

On May 31, the RBI formally rescinded 2018 circular that said that banks could not engage with “any individual or corporate entity dealing with or settling virtual currencies.”

Even after the Supreme Court reversed the ban in March 2020, commercial banks continued to claim it as a justification for refusing to service crypto firms, according to Indian crypto executives.

“We needed to clear the air,” Governor Das remarked. “That particular RBI circular has been thrown aside. As a result, referring to that circular is incorrect.”

“The RBI’s decision to withdraw the circular notice from 2018 is unlikely to persuade major banks to collaborate with them. “Multiple bank managers have told me that they are not permitting crypto because of their internal compliance policy—not because of the RBI,” Zakhil Suresh, founder of cryptocurrency trading simulator SuperStox, told

Several exchanges vowed to sue the RBI in the Supreme Court last Friday after it was revealed that the RBI had informally ordered banks to break links with crypto companies earlier in May.

The RBI has long condemned cryptocurrencies for potentially producing “financial instability”– an issue the bank has never clearly explained – as well as promoting money laundering.

The draught measure is expected to be introduced during the parliament’s monsoon session, which begins next month. The administration has not released any details on the crypto bill.