Banks shouldn't cite April 2018 circular for denying crypto services: RBI

Banks, however, must run a checklist of local laws before providing such services, says central bank

The Reserve Bank of India (RBI) on Monday clarified that banks can no longer cite its circular on cryptocurrencies for not offering such products to customers, but said the lenders must adhere to local rules, which are quite exclusionary. 

The central bank, in its circular dated April 6, 2018, had prohibited banks from dealing in cryptocurrencies or offering any service to customers on them.  

The circular was challenged in the Supreme Court, which set aside the rules on 4 March, 2020.  

However, the RBI said, banks continue to cite the 2018 circular by the RBI in order to justify why