The ‘IAMAI v. RBI’ case took an unexpected turn after the Supreme Court was met with several arguments from the petitioners’ end about the RBI’s jurisdiction, where the petitioner presented the court with the exchanges’ plea, asking a reconsideration of the ban.
Justice Nariman said,
“Exchanges are not asking to uplift the ban, but they are only asking to reconsider. If you don’t give answer to it, I will pass the judgement”
The hearing going on since morning, continued post-lunch, during which Reserve Bank of India’s counsel, Shyam Divan, presented his arguments proving RBI’s jurisdiction in levying a banking ban in the country with respect to crypto-transactions. He cited a previous judgment of ‘ICICI Bank v. Official Liquidator,’ which explained the provisions of the Banking Regulation Act, provisions which suggest that RBI’s actions under 35A of Banking Act have ‘Statutory Force of Law.’
The counsel further explained that the RBI circular was in line with the statutory provisions declared by the Banking Regulation Act which has to be considered to be having statutory force and the RBI was taking mandatory action under the delegated legislative power it has been conferred under Section 35A of Banking Act and Section 18 0f PSS Act, 2007.
After presenting more judgments in favor of RBI’s decision, Divan answered questions on the vagueness of the circular and said that the RBI has sufficiently described crypto in various documents and that its powers are well-defined and can be exercised where there is a threat to monetary, fiscal and financial policy. As far as regulations of other countries are concerned, the counsel rested his arguments by stating,
“India will make laws as per its needs.”
The stage was then taken by the petitioner Rajdeep Singh &