The governor of the Reserve Bank of India, Shaktikanta Das, was forced to reiterate that the central bank’s position had not changed. Specifically, that it still has substantial worries about cryptocurrencies, which it has addressed to the government.
The announcement came after HDFC Bank, a major Indian financial institution, issued a warning to its clients about trading cryptocurrencies like Bitcoin, Ethereum, etc. Customers were sent with a cautionary message from the bank.
The emails were sent to a group of clients who had expressed an interest in trading in cryptocurrencies or had requested assistance on the subject, according to a story on the Indian news portal Business Insider India.
However, the Reserve Bank of India (RBI), India’s central bank, was forced to intervene and clarify that the 2018 circular had been declared invalid by the Supreme Court of India and could not be referenced.
The HDFC Bank was compelled to move quickly and sent out new letters to clients, instructing them to disregard the previous warnings about cryptocurrency. The following are some excerpts from the emails:
“We wish to update you that in the light of the advisory issued by RBI…dated May 31, 2021, on ‘Customer Due Diligence for transactions in Virtual Currencies,’ we request you to ignore our earlier communication dated May 28, 2021,” and “Inconvenience caused is regretted,”
When RBI Governor Shaktikanta Das declared, “There is no change in RBI’s position,” he may have been compelled to make a public statement on the topic. Das went on to say that his bank couldn’t give advice to crypto investors, and that each one had to make a “prudent judgment” when considering cryptocurrency transactions, and that everyone should do their homework.
It is hoped that the Indian government would provide a clear and unmistakable declaration on the future of cryptocurrencies in India after consulting with as many interested parties as possible.