• Home
  • Login
  • Register
Currency Insider
  • Home
  • Reading Library
  • CBDC Think Tank
SUBSCRIBE
No Result
View All Result
Currency Insider
  • Home
  • Reading Library
  • CBDC Think Tank
Currency Insider
No Result
View All Result

RBI is Causing Crypto Hesitancy Among Indian Banks

by CBDC Insider
February 16, 2022
in Asia, Business
Reading Time: 2min read
0
RBI is Causing Crypto Hesitancy Among Indian Banks
Share on FacebookShare on Twitter

Indian banks are still hesitant in providing financial services to crypto companies and investors despite recent regulatory developments, due to lack of clarity from the central bank.

Six banks Forkast spoke to declined to comment, stating they are unsure how the Reserve Bank of India (RBI) would react to any comment made by a bank on facilitating crypto trading in India. Banks also said, on condition of anonymity, that any facilitation would depend on RBI guidelines and that they are waiting for it.

RBI had banned banking services for crypto companies in a 2018 circular that was struck down by the Supreme Court in March 2020. But today, some banks still don’t allow crypto transactions citing non-compliance issues, which is slowing down local adoption.

RELATED STORIES

Russia’s Gazprombank Recommends Slow CBDC Rollout Fearing Loss of Income

Russia’s Gazprombank Recommends Slow CBDC Rollout Fearing Loss of Income

February 8, 2023
E-Rupee to be Piloted by 5 More Banks in 9 More Cities Soon

E-Rupee to be Piloted by 5 More Banks in 9 More Cities Soon

February 8, 2023

“Banks do not want to participate right now because they don’t have full clarity from RBI or the government yet,” said Bhagaban Behera, co-founder and CEO of local crypto exchange Defy.

Based on Behera’s experience, less than half the banks in India are currently willing to provide crypto-related services.

“Just a couple of smaller banks in India are comfortable allowing investors to open bank accounts and exchanges to have transactions,” Behera said. “That’s the real challenge right now.”

India’s finance minister Nirmala Sitharaman announced in her budget speech on Feb. 1 that RBI will launch a central bank digital currency in the financial year beginning April 1, which may have to compete with crypto if legitimized. The minister also announced plans for a 30% tax on crypto income, spreading hopes for crypto legalization in the country.

“Taxation does not mean anything to banks,” said Sathvik Vishwanath, CEO of Indian crypto exchange Unocoin. “Tax [liability] is on the individual — on what he or she files in income declaration every year — not on the banks.”

Read more

Previous Post

Nepal Central Bank Also Prepares to Launch a Digital Currency

Next Post

How is the Digital Rupee Different from UPI Payments?

Next Post
How is the Digital Rupee Different from UPI Payments?

How is the Digital Rupee Different from UPI Payments?

© 2022 CBDC Insider

No Result
View All Result
  • Home
  • Map
  • Reading Library
  • CBDC Think Tank
  • Partners
    • DEA
  • Login
  • Register