Major Indian banks such as HDFC Bank and State Bank of India (SBI) have reportedly warned customers to stop cryptocurrency dealings.
According to a Bloomberg report, HDFC Bank has sent emails advising its customers to refrain from such transactions. The mail said that virtual currency transactions are not permitted in accordance with a central bank circular of 2018.
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Separately, SBI’s payment solutions provider SBI Cards & Payment Services also sent a similar notice to the customers. The company also warned that it may restrict such accounts found to be dealing in cryptocurrencies.
The SBI Card mail said: “Please note, usage of credit card for transactions on virtual currency merchant platforms may lead to suspension/cancellation of your SBI Credit Card in terms of the Cardholder Agreement.”
However, the publication could not ascertain if other Indian lenders also sent similar directives.
HDFC Bank and SBI Card also didn’t respond to Bloomberg’s queries.
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By GlobalDataNotably, several lenders in the country started withdrawing from cryptocurrency exchanges last month following an informal call from the central bank.
The Supreme Court of India had earlier quashed the central bank circular citing it as ‘disproportionate’. The judgement also said that RBI failed to provide the name of any entity that suffered losses due to virtual currency exchanges.
Cryptocurrency is not formally banned in India. However, the notices to the customers indicates that the country may prohibit cyptocurrency trading in near future.
