Prominent Indian banks caution customers against cryptocurrency trading

According to mails sent by prime Indian lenders State Bank of India and HDFC Bank, they have warned their clients against dealing in crypto such as bitcoin. HDFC Bank, in its letter to its customers, told that cryptocurrency dealings aren’t permitted as per Reserve Bank of India’s regulation.

The banks have sent mails to specific customers, asking about their cryptocurrency dealings and suggesting against such transactions.

The banks also cautioned clients that failure to stick to the advisory may result in suspension or cancellation of their cards.

Earlier this month, RBY reportedly told banks to stay away from business transactions in virtual currency. Yes Bank, ICICI Bank and Paytm Payments Bank are among the leading names to break bonds with the sector.
State Bank of India, in its email to the customers, asked that RBI hasn’t given any authorization and license to organizations regulated by them to operate in virtual currency schemes or any other kind of cryptocurrency like Bitcoin.

Further, the State Bank of India also suggested its card customer to be careful of potential financial, economic, operational, customer protection, legal and security-related risks associated with the transaction in digital currencies. SBI has warned its customer that using credit cards for digital currency dealings, merchant platforms may lead to cancellation or suspension of their SBI credit card.


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