New Delhi: Many banks in India have started giving warnings against dealing in virtual currencies, according to emails sent by the lender reported by BloombergQuint.
In the email banks, including HDFC Bank and State Bank of India, have said that users who deal in virtual currencies may face account suspension citing a 2018 circular from the Reserve Bank of India, which was later struck down by the Supreme Court.
According to an email sent by HDFC Bank to Rinku Saini, a 21-year old cryptocurrency investor from Rajasthan, the private lender said, “We have observed that your account reflects probable virtual currency transactions which aren’t permitted as per RBI guidelines.”
The e-mail dated May 28, 2021, has been reviewed by BloombergQuint
The bank told the customer to visit the nearest HDFC branch and “clarify the nature of these transactions” failing which the bank will be “compelled to restrict transactions” in the account, as per a BloombergQuint report.
Similarly, SBI reminded users to be “mindful” of risks associated with cryptocurrencies and virtual currencies. “Please note, usage of credit card for transactions on virtual currency platforms may lead to suspension/cancellation of your SBI credit card,” the public sector lender said in mails.
