Shaktikanta Das, Governor of the Reserve Bank of India, said that the Central Bank still has “big concerns” about cryptocurrencies. These comments come just three days after the RBI issued a circular asking banks not to use the old 2018 cryptocurrency ban circular.
After the country’s central bank, the Reserve Bank of India (RBI), notified banks last week to lift the 2018 ban on cryptocurrencies, the President said they continue to have “concerns” over cryptocurrencies. “There is no change in RBI’s position,” RBI President Shaktikanta Das said at an online press conference today. We have concerns regarding cryptocurrencies as we have communicated to the government,” he said. Das made similar comments in February, saying that the RBI has “concerns” about cryptocurrencies in terms of financial stability.
He Mentioned the Circular
Das said, “We are surprised that some banks still refer to this old circular in their correspondence with their customers,” and said, “It is not right to refer to this circular.” In April 2018, the RBI passed a rule restricting banks and other financial institutions from dealing with cryptocurrency customers, but the Supreme Court overturned that rule last year. Still, some major banks, including HDFC Bank, were referring to the old circular warning customers of the restrictions. Earlier this week, HDFC Bank reportedly fixed its warning.
As for whether Indians should invest in cryptocurrencies, Das said today that the RBI has not given any investment advice. “Every investor needs to do their own assessment, do their own due diligence, and be very careful with their own investments,” Das said.
Indian crypto exchange operators are optimistic that the government will not ban cryptocurrencies and will regulate it as an asset class.