The ‘Internet and Mobile Association of India vs RBI’ case hearing resumed on August 14 where the Supreme Court faced some strong arguments from the IAMAI counsel, Ashim Sood over Reserve Bank of India [RBI] overstepping its jurisdiction, as reported by Crypto Kanoon.
In the previous hearing on August 8, the Council had argued that the ban proposed by the central bank was in opposition to Constitution’s Article 19  g- All citizens shall have the right to practice any profession or to carry on any occupation, trade or business.
However, the Supreme Court explained to the council that the users could switch to banks who do not fall under RBI’s jurisdiction that is the foreign banks and exchanges. Since there are alternatives available to people and the businesses, Article 19  g cannot be levied in this matter.
Sood continued to argue the legality of the RBI ban and that it did not have the authority to place a ban when there was a lack of legislative policy for crypto. Counsel submitted various judgments in support of this argument and summarised that “RBI cant step out of its powers as set out in Banking regulation Act. Therefore its action against private businesses in the form of 6th April circular is illegal,” noted Crypto Kanoon live-tweeting the hearing.
Along with the previous judgments, it was also pointed out that “the RBI in its reply had admitted that it did not have the jurisdiction to speak on the legality of cryptocurrencies due to the lack of clarity on its status on being a coin or a currency”, however, used its ancillary power to impose a ban. They added that RBI acted under the “error of law” and that the law states that something which is not prohibited is legally permitted.