RBI Warns Against the Risk of Using Bitcoins and Crowd Funding

Aug 25, 2015: RBI Deputy Governor R Gandhi said that  financial sector watchdogs are very closely watching the new instruments like Bitcoins and crowd-funding. These people want to operate in an environment that is free of regulations.

He said that we need to be very vigilant with these new financial instruments as they are highly risky to use and can deprive people of their hard earned money. Cryptocurrencies are highly suspected to have financed criminal activities.



He told the Press that Sebi has already come out with a discussion paper on crowdfunding.RBI  has already cautioned the public and monitoring theses activities continuously.

On the Question of the announcement of the domestically systemically important banks, MR. Gandhi said that we will announce in two or three days before the month of August ends.

RBI is planning to come with norms for "on-tap" licencing of banks. He said," adding the central bank may also look at other kinds of banks beyond in the differentiated banking space later. "