Cryptocurrencies to Remain Illegal in India, RBI Says Can't Recognise Bitcoins Under the Current Legal Regime
Bitcoin (Photo Credits: Pixabay)

Mumbai, September 12: RBI has filed an affidavit in the Supreme Court against cryptocurrency. According to a CNN News 18 report, RBI has clarified its stand and has said that RBI can't recognise bitcoins under the current legal regime. RBI has further said that virtual currencies are neither money nor currency. They can’t even be considered as a valid payment system. How does the Cryptocurrency 'Bitcoin' work? How to Buy & Check the Rates of Virtual Digital Currency.

The Supreme Court will hear the matter on September 17 and it has previously cautioned banks and public at large against the potential risks. India’s crypto exchange operators have challenged the central bank’s notice across the country’s courts, arguing the RBI’s chokehold is “arbitrary, unfair and unconstitutional”.

As per reports, the Central bank issued a prohibitive ban that directed banks and other regulated financial institutions to stop providing services to cryptocurrency exchanges and the wider industry within three months.