The Indian central bank backs down on crypto bank accounts

The Reserve Bank of India (RBI) backed down from its decision regarding crypto firms and traders having bank accounts in India.

According to a report published by the Economic Times,  RBI stated that said “no such prohibition exists” in response to an official query about whether banks must continue stopping crypto traders and crypto businesses from using their services.

On March 2020, the Supreme Court of India overturned the ban, but some rogue banks reportedly continued to impose restrictions. The RBI’ss clarification comes over two months after the supreme court ruling on banking services for crypto-related ventures. Despite this, some crypto dealers had complained of remaining frozen out of the banking system. 

The original decision saw services to crypto exchanges shut down. This led to several local exchanges becoming expunged, including Zebpay, Coinome, Koinex, and Cryptokart.

Now the floodgates are officially open the larger exchanges are looking to tap into the market which has a population of 1.3 billion people. Binance acquired local exchange WazirX in November 2019. Also, prior to that South Korean giant Bithumb Global confirmed it would provide some assistance by giving local operators liquidity.