Cryptocurrency: HDFC & SBI Warn User Of Account Suspension, RBI Opposes Crypto Ban

Cryptocurrency HDFC & SBI Warn User Of Account Suspension, RBI Opposes Crypto Ban

Ever since the traders experienced a massive crash in the crypto market, cryptocurrencies have become a trending topic. No single person is remaining who has not gotten the knowledge of these virtual currencies. Though like the crash, the market also saw the prices of some crypto coins like Bitcoin and Ethereum skyrocketing. This has garnered a lot of attention from the existing traders as well as the newcomers. However, trading in India is still being the topic of conversation as presently some respected banks have announced that the users who have been dealing with cryptocurrencies can witness their bank accounts getting suspended.

Banks Such as HDFC & RBI Send e-mails to their users:

Yes, certain banks such as HDFC and State Bank of India (SBI) have started sending a notice to all those users who are involved with the purchase and selling of these digital currencies. These reputed banks are circulating the regulatory notice issued by RBI (Reserve Bank of India) back in 2018. According to that circular, the entire cryptocurrency market was announced to ban. The bank stated that all the banks would prevent itself from providing the facilities to investors for their further cryptocurrency. The banks have demanded some regulatory policies or a complete ban on the trading market and the transactions of virtual currencies.

However, Supreme Court had rejected the RBI circular and had stated that the bank fails to prove its claim of the users being at risk. After three years, HDFC and SBI have sent the same circular issued by RBI in 2019 to its users who were exchanging cryptocurrencies in the form of emails. Reportedly, RBI sent an email to a 21-years-old pointing out his use of cryptocurrencies transactions and stating that it opposes RBI guidelines. Some other account users have received the same emails.

RBI clarifies the matter:

Likely, another SBI user got an alert regarding the possibilities of risk in the crypto market. The bank warned the customers that continuing usage of their credit cards for cryptocurrencies transactions can lead to their cards getting cancelled or suspended. However, RBI has come forward on Monday and clarified the whole matter. They said that the banks can not circulate their notice that was released long back in 2018. The authorities further stated that they received the information through media reports where certain banks are mailing their users to prevent usage of digital currencies and are using their circular as a reference.

RBI said that those restrictions that they had issued three years back were completely nullified by the Supreme court and that those regulations are invalid as of now. After the statement from RBI, WazirX founder and CEO Nischal Shetty expressed his relief over the issue. He stated that the clarification had given a breath of relief to the entire crypto community.

With this clarification, concluding that public facilities such as banks could involve with the crypto market and in India, it might be the beginning of the rapidly growing crypto market. Cryptocurrencies started coming into the limelight after Elon Musk posted some tweets regarding them. It boosted the prices of digital currencies in a very short span of time.

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