RBI seems nervous about petition challenging its decision to ban crypto trading in the supreme court
The Reserve Bank of India (RBI), countries central banking institution in its latest effort to clamp down cryptocurrencies has told the Supreme Court of the nation that the bank’s decision to prohibit the digital currency should not be challenged by the local businesses.
In the affidavit submitted to the Supreme Court of India, the bank said –
“The impugned circular and the impugned statement neither violate the right to equality guaranteed under Article 14 or the right to trade and business guaranteed under Article 19 of the Constitution…The petitioner cannot seek to exercise the extraordinary jurisdiction of this Honorable Court to avail a right which they do not have. The impugned circular and the impugned statement have been issued in a manner that is consistent with the powers conferred on the RBI by the law and the same are legal and valid.”
RBI through the affidavit claims that their decision to prohibit trading with crypto is lawful which does not violate any of the countries regulations. Therefore, the court should not even take the petition filed by the crypto related business and investors into consideration.
Inserting along RBI emphasized that the petitions against the imposed ban on crypto trading in India should be discarded citing lack of rational arguments put forward by the Internet and Mobile Association of India, a non-profit organization working for expanding and enhancing the online and mobile service sectors.
Although RBI is correct in saying that it has the legal and lawful authority to impose a ban on the new asset class, it is also entirely true that businesses and associations have all the legal rights too to file a petition in front of the Supreme Court to challenge the decision taken up by government bodies and agencies.
It is not something new to challenge the decisions of central authorities in front of India highest court. If the RBI is strongly confident in the ban and has sturdy arguments to justify it then it should not worry and interfere with the countries legal system.
In one hand RBI is maintaining its aggressiveness towards crypto while another central agency of the country, Security and Exchange Board of India (SEBI) has sent its authorities to countries like UK, Switzerland, and Japan to learn about the legalities around cryptocurrencies.
Presenting in front of the court, earlier last month, RBI told the Supreme Court that established legal systems can’t recognize Bitcoin as a currency. And without giving the court enough time to ponder over the issue RBI now challenging the petition against the decision to safeguard its decision.