- The ban prohibiting banking support came into effect in July 2018.
- The Supreme Court delays case for two weeks for the RBI to respond to complaints.
The Supreme Court of India has given the central bank in the country directive to respond to complaints regarding the ban of banking services to crypto-related businesses. The court session on August 21 found that the officials from the Reserve Bank of India (RBI) had not properly responded to complaints forwarded by participants in the crypto industry.
The ban prohibiting banking support came into effect in July 2018. The environment has made it difficult for crypto businesses to run efficiently in the country. In fact, several exchange companies have closed doors citing lack of support services.
The Supreme Court’s Justice Rohinton Fali Nariman criticized the directive giving the RBI a couple of weeks to defend its actions. Crypto Kanoon, an advisory resource summarizes the court’s statement:
“Now justice Nariman questions RBI why you have not properly responded to the representation. You just said that we are forwarding to Govt. Angrily says this is not an answer.”
In a follow-up discussion, Crypto Kanoon added:
“Case takes the most unpredictable turn. Justice Nariman directs that RBI must respond to the representation in the manner appropriate. Offers to defer the case for 2 weeks as part heard, let the answer come on reconsideration of banking ban by RBI. RBI has agreed.”
While the RBI case is dragging, the Indian government has been making strides towards the complete ban of digital assets include the introduction of jails terms for those found engaging in crypto activities.