After the recent Supreme Court of India decision which lifted the Reserve Bank of India’s (RBI) ban on banking services for cryptocurrency-related transactions it seems that many domestic banks are not applying the decision.
The sad news revealed by fintech lawyer Mohammed Danish who filed a representation against the RBI on March 12 pleading with them to make sure all banks comply with the ruling.
Their statement, as quoted by CoinTelegraph, suggested that some banks like HDFC and IndusInd Bank are refusing to accept payments from cryptocurrency accounts and will only proceed if the RBI officially notifies them of the change. Danish wrote:
“In most of the cases, the banks have not given any written communication but verbally informed their customers that they are waiting for RBI notification in this regard.”
Danish also bemoaned the lack of clear direction from the Supreme Court as to how to implement the rule change. Instead, the court ruling is being willfully ignored and the bans are behaving in contempt of the law.
“(The) Banks’ refusal to provide services for the sale/purchase of crypto assets is absolutely illegal, unjust and arbitrary in the eyes of the law and the same amounts to wilful disobedience to the order of the Hon’ble Supreme Court,” Danish said in his filing.
Danish works alongside Kashif Raza on their Crypto Kanoon project, a news and analysis website which aids blockchain and cryptocurrency groups in their legal proceedings and gives them advice.
What is stopping the RBI enacting the decision?
Many feel that the RBI is holding out as long as it can before it eventually files an appeal against the March 3rd ruling. The bank is reportedly angered by the decision and sources have claimed they plan to fight the case.
Another worrying issue for the Indian crypto community is the proposed crypto ban bill, which advises a carpet ban on all crypto-related business with a possible prison sentence for those who fail to comply.