Regulate cryptocurrency to curb illegal transaction: RBI to SC
New Delhi, July 20 : The Reserve Bank of India (RBI) on Friday told the Supreme Court that it is necessary to regulate the Bitcoin and other cryptocurrencies to check illegal transactions which will impact the international flow of funds.
The RBI told the bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud that its stand is of extreme caution as it has severe policy implications.
Appearing for the RBI, senior counsel Shyam Divan said they have a particular stand and other departments may have other positions.
Divan told the court that a committee is looking into the issue and as such RBI will require three weeks time to respond to various petitions seeking such regulations.
The senior counsel was referring to an interdisciplinary committee headed by secretary of economic affairs Subhash Garg that was set-up in 2017 to examine virtual currencies and recommend the regulatory framework for crypto currencies.
The Court was hearing a plea against RBI circular banning bank dealings in cryptocurrencies.
The top court slated the next hearing for September 11 as senior counsel Gopal Subramanium told the Court that matter is serious and needed to be heard and decided at the earliest.
Subramaium said, "In today's tech world, transactions are done online and you need banks for that" and that should concern the government.
Subramanium described as "baseless" the RBI circular that mandated its regulated entities including banks to withdraw support for crypto urrency exchanges and other businesses dealing with virtual currencies.
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 stopped on July 6 , while exchanges or cryptocurrency companies will now be unable to avail loans or hold bank accounts.
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.
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Change in name of state to Keralam, a joyful moment for Malayali brothers: PM Modi
Kochi (PTI): Prime Minister Narendra Modi on Wednesday said the change of name of the state from Kerala to Keralam by the Centre was a joyful moment for Malayali brothers.
The PM was speaking at the golden jubilee celebration of the Akhila Kerala Dheevara Sabha, an organisation that works for the welfare of the fishing community in the state.
In his inaugural address, Modi appreciated the role of the fishing community during the 2018 floods in Kerala, lauding their courage, service, and dedication at that time.
He also pointed out that the Dheevara Sabha has been working for fishermen's rights for 50 years.
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Modi said the Centre too has been working for the welfare of the fishing community and has carried out various initiatives to empower them.
He also said that the Union government has taken various measures, including installing over 4,500 satellite-based transponders in fishing boats, to ensure the safety of fishermen at sea.
Modi arrived at the Kochi international airport around 11.30 am and from there travelled by helicopter to the naval base here.
From there, he travelled by road to the Marine Drive for his first event of the day -- the golden jubilee celebrations of the Akhila Kerala Dheevara Sabha.
The PM arrived in poll-bound Kerala to take part in a series of programmes here, including the inauguration of the BJP-led NDA's election convention.
