Bitcoin rally lures financial institutions to warm up to crypto industry in India: Report

As Bitcoin’s shine outweighs stocks, precious metals and the dollar, Indian banks are warming up to industry and are looking at it as an opportunity. Banks are exploring lending to crypto exchanges and accepting bitcoins as collateral.

In March this year, the Supreme Court lifted a two-year-old ban by the Reserve Bank of India on trading in cryptocurrencies. It allowed banks and financial institutions to provide services related to cryptocurrencies.

Despite the SC revocation, banks did not take to the space as there was no directive from RBI. However, the RBI in response to a recent RTI said that there is no prohibition on banks undertaking crypto-related activities, opening up the space for banks to offer services, Nischal Shetty, founder and chief executive officer of crypto exchange WazirX told Business Standard in an interview.