NEW DELHI: Challenging a Reserve Bank of India (RBI) circular prohibiting banks and financial institutions from providing services in relation to cryptocurrencies, the Internet and Mobile Association of India (IAMAI) on Wednesday told the Supreme Court that the RBI did not have the authority to place a ban when there was no legislative policy in place for virtual currencies.
"RBI cannot step out of its powers as set out in Banking regulation Act. Therefore, its action against private bu ..
The counsel also emphasized that the central bank did not undertake research before issuing the ban.
Advocate Sood also informed the court about definitions of 'virtual currency' and cited various sources to show that there are many meanings of virtual currency and various types of it. He said that the circular is vague because it does not define virtual currencies.
The counsel cited various judgements in support of his petition and cited the acts of regulations taken up by the ..
According to the April 6 circular of last year, the entities regulated by the RBI are prohibited from "providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies".
The Internet and Mobile Association of India said that the RBI had banned cryptocurrencies on "moral grounds" as no prior studies were conducted to analyse the effect of these virtual currencies on the economy.
"RBI cannot step out of its powers as set out in Banking regulation Act. Therefore, its action against private bu ..
The counsel also emphasized that the central bank did not undertake research before issuing the ban.
Advocate Sood also informed the court about definitions of 'virtual currency' and cited various sources to show that there are many meanings of virtual currency and various types of it. He said that the circular is vague because it does not define virtual currencies.
The counsel cited various judgements in support of his petition and cited the acts of regulations taken up by the ..
According to the April 6 circular of last year, the entities regulated by the RBI are prohibited from "providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies".
The Internet and Mobile Association of India said that the RBI had banned cryptocurrencies on "moral grounds" as no prior studies were conducted to analyse the effect of these virtual currencies on the economy.
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