On Thursday, The Reserve Bank of India barred banks and financial institutions from dealing with virtual currencies, including Bitcoin, even as it considers a proposal for issuing its own digital currency.
“It has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling Virtual Coins. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately,” the RBI said in a statement.
The regulator will give a three-month buffer period to entities to unwind their business relationships.
Write: Sara Bauer