India’s Central Bank Following in the Footsteps of Nigerian Central Bank Regarding Crypto

Reserve Bank of India (RBI) has urged all public and private limited Indian banks for ending banking services to local crypto exchanges. While some have partly complied with the directions but the majority of them have ended business ties with exchanges as well as crypto traders.

It has been rumored in the Indian media that RBI has informally requested Indian banks to end their business ties with crypto exchanges. In addition, the banks have been further told to suspend all banking services to those customers who are crypto traders. However, so far the news has not been announced officially but has been broke by local media.

Without disclosing the name, a news outlet also issued a statement of an alleged official of one of the Indian banks. In this statement, the anonymous person has told that RBI has informally directed them to comply with the instructions. The instructions he said were cutting the business relationship and banking services with crypto exchanges and crypto traders. He was of the view that in India a great deal of money is going in and out through exchanges. However, such practices are not acceptable to the Indian Central bank and therefore such directions have been issued. The person also told that RBI is suggesting to them that crypto is a source of laundering state’s money and therefore should be discarded.

In the meanwhile, one of the Indian major banks namely ICIC has already issued suspension of service notices to crypto exchange clients. Through these notices, the bank has informed the customers that they will not be facilitated with any banking services including bank accounts.

However, there are also rumors in India that many crypto exchanges, as well as the exchanges’ association, have sought legal advice. They are planning to take up the matter to Courts because their right to do business has been infringed. Under the Indian Constitution, the “right to do business” is a fundamental right that has to be guaranteed by the state.

Similar action was also witnessed in Nigeria where the country’s central bank too has issued similar warnings to local banks.

Yet so far, no suit has been received in any of the Indian Courts from the exchanges or from the traders. This is a continuing news report and will be updated from time to time.

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