In its latest statement on developmental and regulatory policies, the Reserve Bank of India (RBI) has banned the entities regulated by it from engaging with any individual or businesses involved with digital currencies.
The central bank had been cautioning users against making digital currency-related investments. It reiterated its concerns stating that virtual currencies “raise concerns of consumer protection, market integrity and money laundering, among others.”
“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately,” the RBI said.
Furthermore, the RBI also revealed that it has been looking into the possibility of fiat digital currency and has set up an inter-departmental group to study and submit it findings.
“[A]n inter-departmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency. The Report will be submitted by end-June 2018,” it added.
