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RBI/2017-18/154
DBR.No.BP.BC.104 /08.13.102/2017-18
April
6, 2018
All Commercial and Co-operative
Banks /Payments Banks/Small Finance Banks /
NBFCs / Payment System Providers
Madam / Dear Sir,
Prohibition
on dealing in Virtual Currencies (VCs)
Reserve Bank has repeatedly
through its public notices on December 24, 2013, February 01, 2017 and
December 05, 2017, cautioned users, holders and traders of virtual
currencies, including Bitcoins, regarding various risks associated in
dealing with such virtual currencies.
2. In view of the associated
risks, it has been decided that, with immediate effect, entities regulated
by the Reserve Bank shall not deal in VCs or provide services for
facilitating any person or entity in dealing with or settling VCs. Such
services include maintaining accounts, registering, trading, settling,
clearing, giving loans against virtual tokens, accepting them as
collateral, opening accounts of exchanges dealing with them and transfer /
receipt of money in accounts relating to purchase/ sale of VCs.
3. Regulated entities which
already provide such services shall exit the relationship within three
months from the date of this circular.
4. These instructions are issued
in exercise of powers conferred by section 35A read with section 36(1)(a)
of Banking Regulation Act, 1949, section 35A read with section 36(1)(a) and
section 56 of the Banking Regulation Act, 1949, section 45JA and 45L of the
Reserve Bank of India Act, 1934 and Section 10(2) read with Section 18 of
Payment and Settlement Systems Act, 2007.
Yours faithfully,
(Saurav Sinha)
Chief General Manager-In-Charge
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