The cryptocurrency craze has reached a fever pitch in India with users and investors trying to get in on this new form of digital money. However, the Reserve Bank of India has placed restrictions on cryptocurrencies that have caused banks to disallow their customers from using their debit cards to purchase digital currencies. For example, SBI Card and HDFC Bank have both advised their customers not to purchase cryptocurrencies with their cards.
Cryptocurrency restrictions: SBI Card and HDFC Bank advise their clients not to use cryptocurrencies. In a bid to stop their customers from using or investing in cryptocurrencies, two of India’s biggest banks, State Bank of India and HDFC Bank, have issued official statements on their websites asking their customers not to use cryptocurrencies.
Now that cryptocurrencies have become mainstream, and big banks and payment providers have started to issue their own cryptocurrencies and services, some clients of SBI Card and HDFC Bank have been receiving notices that a recent RBI order affects the way they use cryptocurrency. The notice reads, “Please be informed that, in line with the recent RBI circular dated April 6, 2018, it has been decided to not permit usage of Virtual Currencies (VCs) including Bitcoins, in any form, in the Cards & Payments Services offered to our customers. Please note that any transaction of Virtual Currencies through the Cards & Payments Services will be at your own risk and you shall be solely responsible for the loss arising out of such transactions.”Summary of the situation – Email alerts from HDFC Bank about restrictions on cryptocurrencies. – SBI cards and payment services meet the constraints of the decentralized market. HDFC Bank is warning its customers about restrictions on crypto-currencies. In its emails, HDFC Bank asks its customers about transactions with cryptocurrencies and advises against their use. HDFC Bank is referring to a circular issued by Bank of India in 2018 but quashed by the Supreme Court a few months ago. Other organizations like Payment Services and SBI Cards have also taken this step to prevent customer fraud.
Emails HDFC Bank on crypto currency restrictions
Rinku Saini, a 21-year-old cryptocurrency investor from Rajasthan, India, received an email from HDFC Bank as a wake-up call. The email stated that Saini was trading to buy cryptocurrencies and that the RBI guidelines prohibit such activities. Saini, who has been active in the cryptocurrency market for at least four years, has had his account with HDFC Bank since 2019. This savings account is used to buy cryptocurrencies, but also to earn money for various expenses. The email referred to a 2018 RBI circular banning the marketing of cryptocurrencies. However, in March, the Supreme Court overturned a circular on restrictions on cryptocurrencies. This rule was set aside by the RBI in the absence of a firm basis on which the Supreme Court could rely. If HDFC Bank made its decision on restrictions on cryptocurrencies, it did so for no reason. The users expressed their displeasure and sought answers from the bank for financial services. The dissatisfaction also extends to the SBI map, but there too users have not responded. Suraj Pawar, 28, also received such emails from SBI, but unlike the others, he did not deal in cryptocurrencies. Although Pawar admits to being a cryptocurrency trader, he has not done any SBI transactions. The restrictions on cryptocurrencies suggest that Indian services are banding together to achieve their goals. Warnings are unlikely to lead to full regulation, as actors have no incentive to do so. These measures by the Indian government have forced many banks to turn away from cryptocurrencies. Private banks such as Yes Bank Ltd, ICICI Bank Ltd and IndusInd Bank Ltd have also suspended their cryptocurrency operations. The crypto-currency market in India may get darker in the coming months after these new announcements. In addition to India, China is also struggling with cryptocurrencies and is pushing for quick regulation. However, such a move could also benefit India’s digital currency bank. The government will try to limit decentralized currencies like bitcoin, but will make room for their digital currencies. Right now, we can only speculate on what the government will do with cryptocurrencies.Cryptocurrency restrictions are on the rise in India as more and more people are using digital currency. Some banks have started to take action against cryptocurrency. HDFC Bank has even sent a notice to their customers asking them not to use cryptocurrencies. This, however, does not come as a surprise as many banks already have a negative stance towards cryptocurrency.. Read more about indian banks supporting cryptocurrency and let us know what you think.
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