Last year, the Reserve Bank of India decided to prohibit Indian banks from providing any assistance or services to cryptocurrency businesses. Following this development, Digibank, India’s first digital bank is to Freeze customer accounts. Banks have now included new terms in their clients’ contracts, denying them access to utilize cryptocurrencies of any kind.
Now, Digibank, India’s first digital bank is freezing customers accounts involved in the cryptocurrency-related activity. The claim was made by Twitter user “Indian CryptoGirl” (@Desicryptohodlr), who tweeted about Digibank in a post on Jan. 14.
The same Twitter user @DesiCryptoHodlr, recently also posted about Kotak Mahindra Bank with the details of anti-crypto restrictions. Kotak Mahindra Bank, India’s second largest private sector bank by market cap imposed restrictions on the record holders.
“On review of the transactions done in your above-mentioned account, we have noticed that you have undertaken online transaction/s involving dealings in Bitcoin or a virtual currency,”
-The official notice stated.
On January 9th, Indian CryptoGirl claimed that Kotak Mahindra Bank is forcefully making its clients consent to “reserve the right to close” any account without any intimation.
“Kotak Mahindra Bank Limited is one of the largest Indian banks. They have started to show this notice on account creation since past 1 month. This message comes as a ‘one last check’ before account creation and the cryptocurrency tickbox cannot be skipped or unchecked. As a result, to create an account with the bank, we have to agree to the message. Else we cannot begin any online banking service with the bank,”
-Indian CryptoGirl told
The two banks reported for measures to come with regards to a restriction on Indian banks dealings with crypto-related organizations. India’s national bank, the Reserve Bank of India (RBI) declared it last April, and which took effect in July.
The report surfaced when one of the users shared a photo of the message received from the bank’s end:
According to Indian CryptoGirl’s tweet, Digibank, also imposed a credit freeze on her account. This is similar to steps taken by Kotak Mahindra Bank. It is sending notices to its customers dealing in cryptocurrencies, who henceforth should avoid making any further deposits.
“I’ve been a user of DBS’ Digibank for a year. Although I regularly used Kotak Mahindra Bank for my cryptocurrency transactions, I used Digibank only 7 times throughout the year. On January 14th, I received multiple messages from my twitter [sic] followers regarding an account closure notice by Digibank, India’s first digital bank.
[sic]. I checked my mailbox and found the mail myself.”
-Indian CryptoGirl clarified
It is said that banks are showing warning messages on their ATM screens. One of the messages displayed on the ATM screen was :
“Virtual currencies (VCs) are not legal tender and do not have any regulatory permission or protection in India. We request you not to make transactions involving any VCs from any of your account/s. For any such transactions, the bank shall be acting in accordance with the regulatory guidelines which include closing your account without further intimation.”
RBI’s controversial banking blockade has sparked both public and industry-led petitions, some reaching the judiciary courts. However the country’s Supreme Court has more than once remained the official end decider of the issue.
Despite an assault of negative news and endemic absence of clearness, including various rumors that the government has considered the criminalization of crypto in India, reports in late December suggested the tide could yet turn to accept the sector’s legality.