Earlier this month, the Indian Supreme Court issued its ruling in a landmark lawsuit that promises to usher in an era of rising prices for cryptocurrencies in the country.
The court ruled to overturn the ban from the Reserve Bank of India (RBI) – issued in April 2018 – that banned banking services for all crypto-related companies.
However, not all banks will comply with the ruling.
On March 12, fintech lawyer Mohammed Danish filed a request with the central bank against the arbitrary refusal of some domestic banks to provide support services for the sale or purchase of money assets. electronic.
– Crypto Kanoon (@cryptokanoon) March 12, 2020
Along with Kashif Raza, Danish is the co-owner of analytics and news channel on Crypto Kanoon, and specializes in litigation and consulting services for the local cryptocurrency industry.
Banks fear RBI more than the Court
The ban of RBI, the country's central bank in April 2018, instructed all entities under its authority not to trade cryptocurrencies or provide services to any individual or company that trades. with this type of property.
The ban was completely canceled by the Supreme Court, Danish statement, and a number of cases have been reported as banks continue to refuse to process cryptocurrency-related transactions – including HDFC and IndusInd Bank. Danish writes:
In most cases, banks did not give any written notice but verbally informed their customers that they were awaiting RBI's notice on this issue.
Danish added that it should be noted that, after the March 3 cryptocurrency support ruling, the Supreme Court did not give any specific direction to RBI to notify banks and ask them to comply. Court order.
Unanimous verdict against RBI has been issued by three bench judges, Danish writes:
The Bank refuses to provide services for the purchase / sale of cryptocurrency assets that is completely illegal, unfair and arbitrary in the eyes of the law and similar amounts with disobeying the orders of the Supreme Court. high.
Banks under RBI must obey court orders and provide impartial services when they provide them for all other legitimate transactions, Danish added.
The letter requires RBI to release official information to all banks as soon as possible to ensure compliance with the law.
The reason RBI delayed
RBI's lack of coordination with the organizations under its jurisdiction can be explained by reports that it is, in fact, a plan to appeal the court's ruling.
On March 6, just a few days after the verdict, a report from the Indian Economic Times cited unnamed sources about the issue, stating that RBI was planning to file an appeal. Go to court on the ruling of the court.
Moreover, it remains to be seen whether the Indian government will take action to introduce a postponed bill during the 2018 Winter session of parliament, potentially imposing a ban on the use of cryptocurrency in India. is not.
According to Cointelegraph
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