June 23, 2021

Crypto India: HDFC Withdraws its Early Warning Against Crypto Transactions

2 min read

HDFC Bank in India today sent out an e-mail to its customers whom it has warned versus crypto deals, to ignore its early cautions. The HDFC bank was among numerous others that have cautioned its customers to avoid any crypto deals mentioning a Supreme Court quashed circular from 2018. The bank in its latest e-mail stated,

We wish to update you that in the light of the advisory provided by RBI vide their Circular DOR. AML.REC 18/ 14.01.001/ 2021-22 outdated May 31, 2021, on “Customer Due Diligence for transactions in Virtual Currencies”, we request you to neglect our earlier interaction dated May 28, 2021.

After many consumers grumbled about getting threatening emails from these banks, Reserve Bank of India, the Indian Central Bank released an explanation suggesting that banks can not reject customer ask for crypto-related transactions. RBI clarified that the bank-mentioned circulars restricting banks from offering their support to crypto-related services were overthrown by the Supreme Court of India.

The Indian Supreme Court in March in 2015 ruled that banks can not reject their service to Indian crypto exchanges and also called on dedicated authorities to work towards a regulative framework. However, the banks regardless of their early cooperation and service extension went back to preventing using their services again. Numerous declared the constant reports about a possible blanket restriction and absence of regulatory clearness make it difficult for them to carry out their service to virtual currency service providers.

Indian Crypto Exchange Breathe Sigh of Relief

The bank’s non-corporation with a Supreme Court order had actually triggered excellent concern to the budding Indian crypto ecosystem as consumers stopped working to deposit and withdraw funds during peak trading hours.

The recent information from RBI brought a sigh of relief to many crypto exchanges as it would help customers to make direct fiat deposits and withdrawals.

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