RBI’s ban on crypto-related banking services has been challenged again. Maharashtra-based Flintstone Technologies has turned to the High Court in Delhi to seek withdrawal of the April 6 circular issued by the Reserve Bank of India, calling it “arbitrary, unfair and unconstitutional.” The company points out that the central bank has not provided any reasons for the imposed restrictions.
Also read: Indian Investors Flock to Trade Crypto Ahead of RBI Ban
RBI’s Ban Faces another Challenge
An Indian crypto trading company has raised another challenge to the ban imposed by the Reserve Bank of India on banking services offered to companies and individuals dealing with cryptocurrencies. Flintstone Technologies Private Limited has sought the withdrawal of RBI’s April 6 circular, filing a plea with the Delhi High Court. India’s central bank wants to prohibit commercial banks and other financial institutions from providing crypto-related services.
On Friday, the plea was listed for hearing before Justice Rajiv Shakdher, the Business Standard reported. According to the Indian outlet, Shakdher has asked the court’s registry to place it before the bench which is already hearing a similar matter. Earlier this month, Kali Digital Eco-Systems, the company that will be operating the new Coin Recoil exchange, appealed to the High Court against the recent crackdown on banks working with companies from the crypto sector.
In its petition, Flintstone Technologies contends that the central bank’ circular has “fenced” all regulated entities from providing services to any individual or business dealing in virtual currencies, without mentioning any reasons for its decision to impose the restrictions. RBI has given banks three months to comply with the order.
The Maharashtra-based company, which is a provider of online crypto wallet services for Bitcoin and Money trade coin, has also
