According to The Hindu, Many banks have started sending a formal warning to their customer for digital currency transactions being done through their bank account in India. It also said that the Reserve Bank of India does not permit it.
Several users have taken social media in recent days, highlighting the issue.
Many crypto investors have reported the same on Twitter. Accounted holders of India’s one of the largest Banking like HDFC tweeted they have received a cautionary email stating their account reflects crypto transactions. RBI does not permit this based on their 2018 circular.
Most of these large crypto banks aren’t allowing crypto transactions any longer. Not only HDFC but other banks like SBI Card too has sent a similar advisory to customers. They said usage of credit cards for transactions on cryptocurrency may lead to suspension or cancellation of a credit card. Most of the big banks are not processing cryptocurrency-related transactions.
“This issue is that banks are regulated by RBI. Without a formal direction on how to go about cryptocurrency transactions, most banks prefer to follow the RBI’s previous directive,” said a banking industry source.
On the other hand, some banks ask customers to fill self-declaration forms stating they are not doing cryptocurrency transactions.
Last year in March 2020, Supreme Court lifted a ban on cryptocurrency trading as there was no formal order from RBI on the Issue. The finance ministry of India also proposed to work on cryptocurrency laws rather than totally ban them.
The news comes soon after HDFC bank released that cryptocurrencies might get legal status in the country.
Users of cryptocurrencies in India increasing day by day. In April 2021, a home cryptocurrency exchange, Wazirx recorded a monthly $ 5.4 billion volume. Moreover, CoinDCX has also noted this year 340% growth for new user assign sign-up. They have moved more than 1,50,000 to 4,00,000 in the last 15 months.
