Indian Banking Institutions like HDFC Bank and State Bank of India has started sending out emails to their account holders found dealing with cryptocurrencies warning them to disassociate from these activities. Suppose they want to continue using banking services. In that case, they are required to visit the bank’s branch and provide clarifications on these transactions, otherwise, their bank accounts will be compromised, and their usage will be restricted.
These cautionary emails state The Reserve Bank of India’s circular on banning all cryptocurrency transactions, which The Supreme Court afterward removed. However, this does not stop banking institutions from sending out cautionary messages. According to a few account holders, Banks are citing the expired RBI guidelines and are functioning on those expired circulars, even though the Supreme Court has ruled out these bans years back. This is coming out to be pure negligence and ignorance of the banking institutions to mitigate the use of cryptocurrency within the country, which poses a threat to the already existing banking and financial institutions in the country.
Many customers are increasingly complaining and speaking up on these emails and these threats by the major banking institutions claiming they never used credit cards to engage in the cryptocurrency transactions; however, the emails state their usage has some probable virtual currency transaction. These warnings are being sent out more and more each day, increasing the popularity of the cryptocurrency trade worldwide.
Polygon, an Indian origin cryptocurrency made by an Indian startup, recently crossed $10 billion market capital making its way to the top 20 cryptocurrencies worldwide, which has increased further to $16 billion today. As a result, these new cryptocurrency tokens are gaining a lot of attention from newer traders and tier 1 investors looking to engage in trading activities with newer tokens that are yet to experience rallies that result in a surge of prices.
A lot of miscommunication and unclear opinions lead to panic among the banking institutions trying to play safe and limit cryptocurrency transactions altogether. Firstly, the public and private sector banks collectively decided on choking the payment gateways provided to cryptocurrency trading applications amid the speculations of bitcoins being completely banned in the country.
Taking control over the issue and sending out notices to customers seems to take the process of curbing to another level at the time when there are no solid directions or bans reinstated by the regulatory authorities or RBI against the trading of cryptic values in India.