{"id":249093,"date":"2021-06-01T15:45:09","date_gmt":"2021-06-01T10:15:09","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=249093"},"modified":"2021-06-01T14:56:40","modified_gmt":"2021-06-01T09:26:40","slug":"rbi-issues-customer-due-diligence-for-transactions-in-virtual-currencies-vc","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/01\/rbi-issues-customer-due-diligence-for-transactions-in-virtual-currencies-vc\/","title":{"rendered":"RBI issues Customer Due Diligence for transactions in Virtual Currencies (VC)"},"content":{"rendered":"<p style=\"text-align: justify;\">The Reserve Bank of India has issued <a href=\"https:\/\/www.rbi.org.in\/Scripts\/NotificationUser.aspx?Id=12103&amp;Mode=0\">Circular dated 31.05.2021<\/a> providing a clarification regarding transactions in Virtual Currencies (VC). Following clarifications are provided vide the Circular :<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"text-align: justify;\">RBI circular DBR.No.BP.BC.104\/08.13.102\/2017-18 dated April 06, 2018 was set aside by the Supreme Court on March 04, 2020 in the matter of <em>Internet and Mobile Association of India v. Reserve Bank of India<\/em>. Therefore, the said circular is no longer in force.<\/li>\n<li style=\"text-align: justify;\">RBI directs the Banks, as well as other entities, to continue to carry out customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000080;\">*Tanvi Singh, Editorial Assistant has put this story together.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India has issued Circular dated 31.05.2021 providing a clarification regarding transactions in Virtual Currencies (VC). Following clarifications are <\/p>\n","protected":false},"author":121,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[],"class_list":["post-249093","post","type-post","status-publish","format-standard","hentry","category-legislationupdates","category-notifications"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>RBI issues Customer Due Diligence for transactions in Virtual Currencies (VC) | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/01\/rbi-issues-customer-due-diligence-for-transactions-in-virtual-currencies-vc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RBI issues Customer Due Diligence for transactions in Virtual Currencies (VC)\" \/>\n<meta property=\"og:description\" content=\"The Reserve Bank of India has issued Circular dated 31.05.2021 providing a clarification regarding transactions in Virtual Currencies (VC). 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In the 180 pages long verdict penned by Justice Ramasubramania, it was held, \u201cWhen the consistent stand of RBI\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":252127,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/02\/cryptocurrency-2\/","url_meta":{"origin":249093,"position":1},"title":"Will the year of Cryptocurrency ever arrive in India?","author":"Editor","date":"August 2, 2021","format":false,"excerpt":"by Swarnendu Chatterjee\u2020 & Yashika Bhardwaj\u2020\u2020","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-53.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-53.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-53.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-53.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-53.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":195108,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/04\/09\/rbi-prohibits-dealing-in-virtual-currencies-by-regulated-entities\/","url_meta":{"origin":249093,"position":2},"title":"RBI prohibits dealing in Virtual Currencies by regulated entities","author":"Saba","date":"April 9, 2018","format":false,"excerpt":"Reserve Bank has repeatedly through its public notices on December 24, 2013, February 01, 2017 and December 05, 2017, cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. 2. 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