Home News Exchange RBI V/s Crypto Exchanges: Central Bank Rebutts IAMAI’s Petition in Supreme Court

RBI V/s Crypto Exchanges: Central Bank Rebutts IAMAI’s Petition in Supreme Court

September 24, 2018 16:49
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Photo Credit: Hindustan Times
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As we wait to know if the Supreme Court will hear the case on September 25 (tomorrow), there is one little event that we had not covered. On September 8, the Reserve Bank of India (RBI) had filed an affidavit as a response to Internet and Mobile Association of India (IAMAI).

In the affidavit filed in the Supreme Court, the central bank notes that all the petitions, including the one filed by IAMAI states “is not maintainable either in law or on facts and, hence, liable to be dismissed as such”, a portal Inc 42 reported.

The central bank further said, “The impugned circular and the impugned statement neither violate the right to equality guaranteed under Article 14 or the right to trade and business guaranteed under Article 19 of the Constitution…The petitioner cannot seek to exercise the extraordinary jurisdiction of this Hon’ble Court to avail a right which they do not have.”

It also added, “There is no statutory right, much less an infringed one, available to the petitioner to open and maintain bank accounts to trade, invest or deal in virtual currencies.” In addition, the central bank claims that IAMAI and others “haven’t got any reasonable or tenable ground for interference by this court.”

Earlier this year, the RBI had ordered Indian banks to stop working with cryptocurrency exchanges in India. In turn, the exchanges filed a petition against the RBI in Delhi.

The petition alleged that, “RBI’s order asking Indian banks to suspend their dealings with crypto exchanges is “unconstitutional” as it violates two important articles of Indian constitution: Article 19 (1) (g), which allows the citizens to carry out any occupation, trade or business; and Article 14, which prohibits discrimination between equals.”

Although the RBI is forced to defend its circular, lately it has taken steps to try and understand cryptocurrencies and its underlying technology, as was evidenced by a recent report in which the central bank stressed the need for regulations.

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