Several Indian banks have reportedly halted services to customers dealing in cryptocurrencies despite the central bank, the Reserve Bank of India (RBI), informing them that the banning circular is no longer valid. The latest bank to join the fray is IDFC First Bank.
- IDFC First Bank has become the latest bank to halt services to crypto companies, Livemint reported last week, citing industry sources. The publication conveyed:
IDFC First Bank over the past week temporality stopped services, as it is doing enhanced due diligence regarding banking support to crypto exchanges.
- This followed the RBI clarifying to financial institutions that its April 2018 circular which banned banks from providing services to crypto businesses is no longer valid and should not be cited or quoted. The central bank added that banks may “continue to carry out customer due diligence processes” in compliance with existing regulations.
- Other banks that have kept their distance from clients dealing in cryptocurrencies include ICICI Bank, Yes Bank, and Paytm Payments Bank, the publication noted.
- HDFC Bank and State Bank of India (SBI) have also cautioned their users against the risks of dealing in cryptocurrencies, including bitcoin, due to them being unregulated.
- However, bitcoin and other…