TL;DR Breakdown
• HDFC Bank alerts on cryptocurrency restrictions by email.
• SBI Cards and Payment services join the restrictions in the decentralized market.
HDFC Bank has been warning its clients about cryptocurrency restrictions. In emails, HDFC Bank asks its customers about crypto transactions, and they advise against using them. HDFC Bank cites a circular created in 2018 by the Bank of India but was overturned by the Supreme Court a few months ago.
Other organizations, such as Payment Services and SBI Cards, have also taken this step to prevent customers from being scammed.
HDFC Bank emails about cryptocurrency restrictions
Rinku Saini, a 21-year-old crypto investor from Rajasthan in India, received an email from HDFC Bank as a red flag. The email stated that Saini had made transactions to buy cryptocurrencies, and RBI guidelines prohibited such a move.
Saini, who has been in the cryptocurrency market for at least four years had his HDFC Bank account since 2019. This savings account is used to buy cryptocurrencies besides receiving his earnings for miscellaneous expenses. The email cited the 2018 RBI circular, where the commercialization of cryptocurrencies is prohibited.
But the Supreme Court had annulled the circular on cryptocurrency restrictions in March. This rule was removed from RBI for not having a solid foundation that the Supreme Court could uphold.
Although HDFC Bank has made its move on cryptocurrency restrictions, it is doing so without a foundation. Users have expressed their dissatisfaction and have asked the financial services bank for answers. Discontent also spreads towards SBI Card, but users had no answers either.
Suraj Pawar, a 28-year-old, has also received these emails from SBI, however, he has not traded cryptocurrencies, unlike other people. Although Pawar admits that he is a crypto trader, he has not made the transactions with SBI.
The cryptocurrency restrictions point out that Indian services are coming together to fulfill their goals. The alerts will likely not go to full regulation because the entities do not have a basis. These measures that the government of India has taken cause many banks to move away from cryptocurrencies.
Private Banks such as Yes Bank Ltd, ICICI Bank Ltd, and IndusInd Bank Ltd have also stopped their cryptocurrency operations. The crypto market in India may turn dark for the next few months with these new announcements. Besides India, China is also fighting cryptocurrencies by calling for an imminent regulaation policy.
However, such a move can also benefit the bank of India’s digital currency. The government will seek to restrict decentralized currencies like Bitcoin but make way for its digital currency. For now, there is only speculation about the measures that the government will take on cryptocurrencies.
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