The Reserve Bank of India has issued Circular dated 31.05.2021 providing a clarification regarding transactions in Virtual Currencies (VC). Following clarifications are provided vide the Circular :
- RBI circular DBR.No.BP.BC.104/08.13.102/2017-18 dated April 06, 2018 was set aside by the Supreme Court on March 04, 2020 in the matter of Internet and Mobile Association of India v. Reserve Bank of India. Therefore, the said circular is no longer in force.
- RBI directs the Banks, as well as other entities, to continue to carry out customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances.
*Tanvi Singh, Editorial Assistant has put this story together.