Banks to cease cryptocurrency transactions from Friday
Mumbai, July 5: Commercial banks in the country will no longer be able to transact in cryptocurrencies like Bitcoin from Friday in view of a Reserve Bank of India (RBI) directive in April.
In a bid to protect consumers and curb money laundering and other financial irregularities, the RBI had, on April 5, barred all its regulated entities, including banks, from dealing in virtual currencies like bitcoins, following its earlier multiple warnings on their risks.
Regulated entities already providing services to any individual or business dealing in digital currencies had been given three months to exit the relationship.
Cryptocurrency trade in rupees will stop from midnight, while exchanges or cryptocurrency companies will now be unable to avail loans or hold bank accounts.
Investors would only be able to do peer-to-peer transactions with a fellow trader and such transaction would only be possible in the form of exchange with any other cryptocurrency.
The RBI statement in April had said: "We have now decided to fence RBI-regulated entities from the risk of dealing with entities associated with virtual currencies. They are required to stop having a business relationship with entities dealing with virtual currencies forthwith, and unwind the existing relationship within three months."
"Virtual currencies, also variously referred to as cryptocurrencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others".
The RBI, however, also said it is exploring a "fiat digital currency" issued by the central bank.
According to investigation agencies here, with the demand and price of cryptocurrencies on the rise, cyber criminals have found innovative ways to dupe those looking to invest.
Bitcoins in India have been trading at more than Rs 10 lakh each, while people are investing amounts ranging from Rs 3,000 to several lakhs of rupees.
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BJP to retain Assam, win Bengal; NDA to emerge strong in TN, Kerala, Pondy: Pradhan
Bengaluru (PTI): Union Minister Dharmendra Pradhan on Thursday said the BJP would retain power in Assam, while expressing confidence that there would be a change of government in West Bengal, citing people’s continued faith in PM Narendra Modi and the party.
Asserting that NDA is likely to return to power in the union territory of Puducherry, he expressed confidence that the BJP-led alliance would emerge strongly in Kerala and Tamil Nadu.
The counting of votes for all five Assemblies—West Bengal, Tamil Nadu, Puducherry, Kerala, and Assam—will take place on May 4.
Polls were conducted in a single phase in Assam, Kerala, Puducherry, and Tamil Nadu, while West Bengal saw two phases of polling on April 23 and 29.
On April 9, Assam, Kerala, and Puducherry went to the polls, while Tamil Nadu voted on April 23.
“Beyond exit polls, all of us who worked in the election campaign this time in the five states (four states and one union territory) are confident that the BJP will retain power in Assam and that, for the first time in a long period, West Bengal is heading for a major change,” Pradhan said.
Speaking to reporters, the union education minister said there is significant anti-incumbency against the TMC government in West Bengal due to alleged misgovernance, appeasement politics, and corruption.
“The people of West Bengal are reposing their faith in the leadership of Prime Minister Narendra Modi, the policies of the BJP and the leadership of the state BJP. I am confident there will be a change of government in West Bengal,” he added.
Pradhan said that, in all probability, the NDA (All India N R Congress–BJP alliance) will retain power in Puducherry.
“In Kerala and Tamil Nadu, I think we are all confident that our alliance will emerge strongly,” he added.
Several exit polls on Wednesday predicted a thumping victory for the BJP in Assam and a clear edge for the party over the ruling TMC in West Bengal, while projecting a return of the DMK government in Tamil Nadu and a comeback by the Congress-led UDF in Kerala after 10 years.
However, some pollsters predicted a big win for the TMC in West Bengal and a hung House in Tamil Nadu, with actor-turned-politician Vijay’s TVK emerging as a spoiler for the DMK. Almost all forecasts indicated a return to power for the AINRC-led NDA government in Puducherry.
