India’s SBI Card and HDFC Bank have sent warning emails to their customers dealing with cryptocurrencies. As shared on Twitter, the warning email cites a blanket ban regulation from RBI in 2018, which India’s apex court later struck down. Yet, customers are warned of blocking banking services if they continue.
Indian Banks Hesitate to Support Cryptocurrencies
Just as we saw a couple of years ago, Indian banks are warning and blocking services to those who’re dealing in cryptocurrencies. The latest comes from HDFC Bank and SBI Card customers, where they inform on Twitter about receiving warning emails for dealing in cryptocurrencies.
Both the HDFC Bank and SBI Card have cited the same notice of RBI’s ban from June 2018, where it warned and recommended cutting banks to cut off from those providing cryptocurrency services. Some of the cryptocurrency exchanges shut down, while others introduced a peer-to-peer system for transactions.
The RBI’s decision was turned over by India’s Supreme court in March 2020, as they have failed to explain what degradation these virtual tokens are doing to the financial economy. While this resumed the banking services to cryptocurrency exchanges, banks are still reluctant to offer support for them.
@HDFC_Bank I received an email threatening withdrawal of banking services because I purchased some crypto. Email cites 2018 RBI guidelines which were quashed by Supreme Court last year. Given crypto being deliberated by law makers, is this not harassment? pic.twitter.com/E3CAPx7hL4
— Sanat Mehrotra (@sanatmehrotra) May 28, 2021
And this continues even today, as we see top financial service providers – HDFC Bank and SBI Card warning customers on dealing with cryptocurrencies. In the email sent out by HDFC Bank, it said, “To comply with the regulatory guidelines (RBI vide guidelines DBR.No.BP.BC.104 /08.13.102/2017-18 dated April 06, 2018), the Banks are advised to exercise due diligence by closely examining the transactions carried out in the account on an ongoing basis.”
Now sbi🥴 pic.twitter.com/m8CcuCYLMv
— Suraj (@Soorajapawar) May 29, 2021
Similarly, customers of SBI Card received emails stating, “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.” This comes as a surprise to many as the RBI notice cited by their banks was overturned but wasn’t considered.
Also, earlier this month, we’ve seen many cryptocurrency exchanges took offline the option to deposit INR through IMPS, RTGS, and NEFT due to issues with partner banks. This forced them to switch back to the peer-to-peer model once again.