RBI bans Bitcoins, other virtual currencies, prohibits any dealing with banks

Thursday barred banks and financial institutions from dealing with virtual currencies including Bitcoins and said that it was time and again warning users of virtual currencies regarding the risks associated with it.

“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs (virtual currencies),” the RBI said in a statement on Thu ..
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The RBI is expected to issue a circular in this regard very soon.

The regulator will also give a three-month buffer period to entities to unwind their business relationships