The Reserve Bank of India (RBI) has informally urged banks and financial institutions to break up alliances with cryptocurrency exchanges and traders. Three sources related to the industry gave this information. The RBI has given this advice to banks and financial institutions when the value of various cryptocurrencies has gone up sharply over the past few years globally.
However, the Supreme Court has ordered that banks can work closely with the industry dealing in cryptocurrencies. It is also important that the RBI directive comes at a time when the country is preparing to bring legislation to ban cryptocurrencies and punish anyone trading in them. If this happens, India will be the first country in the world to take such a harsh decision against cryptocurrencies.
However, in view of this second wave of corona infection, it is difficult to say when a bill will be introduced in this direction.