It has been only a few days after India’s Supreme Court lifted the 2018 RBI ban on cryptocurrency usage, and the Reserve Bank of India is preparing to counter the decision. A new report noted that the RBI is planning to file a review petition as it fears virtual assets might put the banking system at risk.
RBI Fights Back
As Cryptopotato reported on Wednesday, the Supreme Court of India finally reversed the ban on cryptocurrency trading and holdings in the large country. The excitement quickly led to a price surge of some local crypto projects as the nation was preparing for the following steps.
However, a local report showcased the RBI’s intentions to file a review petition in the Supreme Court. The national bank is concerned that cryptocurrency usage could eventually lead to disruption of the banking system, the report stated.
Abhishek A Rastogi, a partner at Khaitan & Co – a company that had previously filed a case against RBI’s 2018 directive, believes that the petition would not change the course of action. Moreover, he noted that other affected firms could stand against the national bank in this case:
“SC may look at the RBI’s review petition, but as of now, the cryptocurrency platforms can operate in India. Many companies have even gone bankrupt after the RBI’s diktat, and they may also look to initiate action in this regard.”
RBI Capped Yes Bank Withdrawals
Amid its battles with the Supreme Court’s crypto ban reversal, the RBI had to take a stand in another controversial local situation. After years of questionable operations and risky loans, the Mumbai-based Yes Bank’s Board of Directors was superseded by the national bank.
Furthermore, the RBI capped withdrawals at RS 50,000 (approximately $680) and said that it’s working on a restructuring plan to protect the customers:
“The Reserve Bank assures the depositors of the bank that their interests will be fully protected and there is no need to panic.
The Reserve Bank will explore and draw up a scheme in the next few days for the bank’s reconstruction or amalgamation and with the approval of the central government, put the same in place well before the period of moratorium of 30 days ends to that the depositors are not put to hardship for a long period of time.”