The Reserve Bank of India (RBI) is planning to file a petition against the recent landmark judgment made by the Supreme Courtroom that nullified the controversial banking ban information technology imposed on companies transacting in cryptocurrencies.

According to a study past The Economic Times on March vi, the RBI is worried that the court'south decision could lead to cryptocurrency trading and put the banking system at gamble.

Challenging the Supreme Court's decision

Every bit Cointelegraph reported, on March 4 the Supreme Court nullified the RBI'southward blanket ban on banks dealing with crypto businesses. The central banking company had initially enforced the ban in July 2022.

This led to petitions from industry players and public alike, until the challenge was brought to the Supreme Court by the Internet & Mobile Clan of India (IAMAI), a not for profit industry body representing net consumers and investors.

The Supreme Court'due south decision to overturn the ban followed two weeks of hearings in January this year. The RBI will now seek a review of this ruling.

No proof that the banking system is at risk

The RBI's concern that this may result in cryptocurrency trading may already be moot, as many Indian cryptocurrency exchanges already resumed fiat deposits and withdrawals within 24 hours of the ban being lifted.

Yet, the court ruling stated that RBI had not conclusively shown that cryptocurrency trading was damaging. Unless it tin do so, the Supreme Courtroom is unlikely to alter its decision, despite the fundamental bank's protests.

The cardinal bank may too confront another effect, equally many companies were forced to cease trading later the ban and may seek compensation. As Abhishek Rastogi, a lawyer representing one of the cryptocurrency platforms explained:

"The Supreme Court may look at the RBI'south review petition but as of now the cryptocurrency platforms tin operate in India. Many companies accept fifty-fifty gone bankrupt after the RBI's diktat and they may also expect to initiate action in this regard."