On April 2018 Reserve Bank of India rolled out a circular to Indian banks to ban any transactions related to cryptocurrencies which led to a huge fall in the value of cryptocurrencies in India. One question which has been bothering everyone since then is, Are Indian banks processing crypto transactions now?
A lot of people suffered a huge monitorial loss with investments made in cryptocurrencies, this Ban got the whole Indian crypto community shocked and fearful. Crypto exchanges that were trying to emerge in the market such as Zebpay, Koinex, Pocketbits and a lot of others were slammed down.
Wazir X one of the crypto exchange which was just launched a month ago and got a major hit through this ban, it was the sad begining phase for their crypto journey. Despite all the forced decisions which were made over the Indian crypto industry, the leaders from the industry understood that they need to fight against these challenges similarly as all other Crypto communities across the world were doing.
It was a fierce battle in the Supreme court of India where the crypto community had to prove their point that a new technology that works under the government rules should not be banned without any solid proof that they can cause any harm.
The historical decision of 6th March 2020 to remove the RBI ban
On 6th March 2020 Supreme court of India ruled out the decision of RBI to ban cryptocurrency-related transactions in India. It was a huge battle in which the Indian crypto community was fighting but finally, the result was positive for them.
Overruling the decision of RBI was a major news in the Indian crypto industry and soon the crypto exchanges started deposits and withdrawals through Indian banks. Binance acquired Wazir X which is one of the leading crypto platforms in India was quick to respond and got their deposits enabled in 24 hours. If you are an Indian crypto enthusiast open a FREE Crypto Trading Account with WazirX and deposit funds directly from your bank account.
The RBI circular to ban banks from funding crypto industry-related transactions was challenged by India’s mobile and internet association which was representing the various crypto exchanges. Their logic was RBI has no right to frame any such law to ban people from trading in cryptocurrency when no such law exists.
Some Indian banks are still refusing to process crypto transactions
On March 12 Lawyer Mohammed Danish filed a representation with the central bank against arbitrary denial of certain banks for processing crypto-related transactions even when the supreme court has ruled out the decision. Mr. Danish also mentions though there has been no such notice by the court to RBI to roll out a message related to crypto transactions this action is in complete denial to the supreme court’s decision.
Some news also has been rolling that RBI is planning to file a review petition for the supreme court’s notice. A bill was introduced in parliament winter session 2019 for a blanket ban on crypto was postponed. It is believed that this bill will be playing a major role in the future of cryptocurrencies in India.