RBI's diktat on virtual currencies paves way for dabba trading in bitcoins

Dabba trading is the informal, unregulated market where transactions are executed outside an exchange, and the settlement is in cash

The Reserve Bank of India’s (RBI’s) April diktat that banks stop dealing in virtual currencies has paved the way for dabba trading in bitcoins and other cryptocurrencies. 

The grey market, operating in Mumbai and Ahmedabad, is seeing a flurry of activity in cryptocurrency trading, most of it in bitcoins.  

The recent rally in bitcoin prices, with prices going up 30 per cent in two weeks, has only fanned the frenzy in the grey market.

Dabba trading, prevalent so far in stocks, is the informal, unregulated market where transactions are executed outside an exchange, and the settlement is in cash.