India's central bank tries to clear confusion over cryptocurrencies

Shaktikanta Das, Governor of the Reserve Bank of India, was asked to reiterate that there was no change in the central bank's position. So, they still have big concerns about cryptocurrencies and they have been forwarded to the government. The announcement came after HDFC Bank, a leading Indian financial institution, warned its clients not to trade with cryptocurrencies such as Bitcoin, Ethereum and others. The bank sent a warning alert to its customers in e-mails. According to an article on Indian news platform Business Insider India, the emails were sent to a group of customers who expressed interest in transactions in cryptocurrencies or sought advice. The bank responded in emails, citing a 2018 order from the Reserve Bank of India, essentially stating that trading with cryptocurrencies is illegal in the country. However, the RBI, India's central bank, had to intervene in the case and explain that the 2018 circular was overturned by the Supreme Court of India and therefore cannot be cited. HDFC Bank had to act fast and followed up on the original emails and new emails asking customers to ignore previous warnings about cryptocurrencies. Excerpts from the emails include: "We would like to inform you in light of the RBI's recommendation on 'Customer Due Diligence for Virtual Currency Transactions' dated May 31, 2021. RBI President Shaktikanta Das went public on the matter when he said, "There is no change in RBI's stance." they must have felt compelled to make a comment. they all need to make a "very cautious decision" when considering trading cryptocurrencies and they all need to do their due diligence.

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