RBI says banks can’t use its 2018 circular to ban crypto transactions

The Reserve Bank of India said on Monday that banks cannot refer to its April 2018 circular – struck down by the Supreme Court in 2020 — to caution customers about trading in cryptocurrency, a move that was hailed by the nascent industry.

In recent weeks, several lenders including HDFC Bank and State Bank of India, had officially flagged transactions relating to the purchase of cryptocurrency, warning customers of curbs, including permanent closure of accounts.