The Reserve Bank of India (RBI) told the Bombay high court that it had not licensed or authorised any company to operate virtual currency schemes or deal in bitcoin and other virtual currencies. The RBI said it had “cautioned the users, holders and traders of virtual currencies, including bitcoins, about potential risks that they are exposing themselves to”. Dr Pillai said the RBI had permitted several non-banking entities to issue e-wallets, which is impermissible under banking laws. He alleged that a few entities had been operating e-wallets and smart cards without RBI authorisation. Dr Pillai said non-banking entities were accepting deposits in electronic domains for payments under various brand names.

Source: Hindustan Times April 08, 2017 18:22 UTC