The Reserve Bank of India (RBI), India’s central bank, is reportedly set to appear the Supreme Court’s decision that lifted the banking ban it imposed on cryptocurrency businesses.
According to a report published by the Economic Times citing “people with knowledge of the matter,” the RBI revealed it’s concerned the ruling could see cryptocurrency trading in India grow and put the country’s banking system at risk.
As CryptoGlobe reported, the Reserve Bank of India barred banks from servicing cryptocurrency-related businesses in April 2018, prompting various petitions to overturn the move. These petitions led to a case pitting the RBI against the Internet and Mobile Association of India (IAMAI) that was heard by a three-judge bench, and ended up in a ruling against the central bank’s ban, calling it unconstitutional.
On social media, Indian cryptocurrency users reacted the RBI’s plans to appear the Supreme Court’s decision with skepticism.
We believe that this Review Application would be dismissed, if RBI chooses to file it.
— Crypto Kanoon (@cryptokanoon) March 6, 2020
The RBI’s concerns that the ban being lifted could see cryptocurrency trading grow may come too late, as shortly after the Supreme Court’s ruling exchanges throughout India started opening fiat deposits for their users.
Abhishek Rastogi, partner at Khaitan & Co., who submitted a case in the Deli High Court that was later on transferred to the Supreme Court, told the news outlet that:
The Supreme Court may look at the RBI’s review petition but as of now the cryptocurrency platforms can operate in India. Many companies have even gone bankrupt after the RBI’s diktat and they may also look to initiate action in this regard.
For example Zebpay, a cryptocurrency exchange that shut down after the ban and recently reopened, has already announced on social media users who go through know-your-customer (KYC) checks can deposit Indian rupees. The exchange adds that due the interest it’s been receiving, customers may even face delays.
Featured image via Pixabay.