India Traders Rage As Banks Hold On To Outdated Crypto Ban

Republished By Plato

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Indian banks are notifying customers against crypto trading following an outdated law.
India introduced a law against crypto in 2018, but the SC ruled it out a year ago.
Authorities have not ordered banks in the country to change policy.

Indian banks continue to notify customers against trading cryptocurrencies, in line with a central bank rule from 2018. However, the Supreme Court overturned it over a year ago.

Before that, the law explicitly banned crypto dealings for banks. Now, despite its non-validity, banks are still telling customers to act on the same law, much to their annoyance. This includes some of India’s biggest lenders.

For instance, HDFC Bank, one of India’s largest, has been informing its customers of the same. Social media saw them venting their frustration about the bank’s repeated cautionary notifications. Other than that, SBI card users are also facing threats from their bank about suspension and account closure.

In addition to these, other major banks are also warning customers against crypto transactions. They have been asking them to complete declarations stating their nonparticipation in crypto.

India introduced the referred-to ban in these cases in 2018. The Supreme Court has, since then, ruled it out. Still, the RBI has made no formal announcement on any changes in banks’ policy.

Crypto exchanges in the country have planned to ask the top court for next steps and whether RBI has the authority to demand that lenders refuse crypto transactions for traders. The court’s decision regarding this will be very important for the future of crypto in the country.

Source: https://coinquora.com/india-traders-rage-as-banks-hold-on-to-outdated-crypto-ban/

Time Stamp: May 31, 2021