Back in April, the Reserve Bank of India banned its country’s banks from dealing with cryptocurrencies. Many of those institutions wanted to know why. Now the bank has been forced to say why, and it can’t.
Apparently the decision was made without listening to a panel of experts or reading a research paper, Quartz reported Wednesday after reviewing a Right To Information (RTI) application filed by Varun Sethi, a lawyer based in New Delhi.
“It seems as if the ban was arbitrary and it came into effect without any thought from the RBI,” Sethi said. “It has either answered in the negative or given conflicting answers to our questions asking what led to this ban.”
The central bank may be forced to give more concrete answers before India’s top court, where various exchanges have filed appeals against the April ban. Read more here.