The Central Bank of India – RBI has responded to an RTI query about why the decision to block banks from dealing in cryptocurrency was taken earlier this year – but the answer had no explanation whatsoever.
Shri Varun Sethi, who presents himself as a “blockchain lawyer,” demanded clarifications from RBIC entral Bank of India under Central Bank of India the country’s Right to Information Act. According to the answers provided, the Bank did not make a proper effort to thoroughly research the nature and usage of cryptocurrencies before issuing its crypto ban.
The officials of the bank simply said “no” when asked whether the central bank had organized a team to explore the nature and threats of blockchain technology.
The bank also declined to clarify if there were any expert opinions requested on the subject if the RBI had put together any information on existing cryptocurrency exchanges in India and if officials tried to work on a framework for dealing with cryptocurrencies inside the national banking system.
The Indian exchanges and individual traders were struck hard by this unreasonable move of RBI. The ban has been challenged in the Supreme Court and sparked a number of legal challenges, and some trading platforms are determined to leave the country looking for more encouraging and just jurisdictions.
RBI said at the time that “entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling [cryptocurrencies]. Regulated entities which already provide such services shall exit the relationship within a specified time.”
The window provided by India’s central bank for financial services providers to comply with its directive ends on July 5.