One of India’s largest private sector banks, ICICI Bank, has tweaked its remittance form to require clients to declare that they would not invest in cryptocurrencies or even use proceeds of cryptocurrency trading. ICICI Bank has been gradually shutting out crypto ties in recent months, in line with actions taken by its peers, including Yes Bank and IDFC First Bank.
ICICI Bank asks its clients not to use its liberalized remittance scheme for crypto investments.
ICICI Bank has now asked its clients not to use its liberalized remittance scheme (LRS) for crypto-related investments. In its Retail Outward Remittance Application form, the bank now requires clients to denounce cryptocurrencies altogether. The private bank has chosen to shun the crypto industry despite a Supreme Court ruling that overturned a ban imposed by the Reserve Bank of India on banking relations with cryptocurrency entities. It was also reported earlier that several other private banks straight up denied customers to invest in cryptocurrencies. However, the central bank later clarified that banks could not use the old circular to deny customers investing in crypto.
ICICI has been a major source of funds flowing to the crypto industry.
According to a local report by Inc42, ICICI has been a major source of funds flowing to the crypto industry. Citing the founder of a local exchange who requested anonymity, the outlet predicted that this is just the beginning and other banks will follow suit. “With ICICI Bank having to come up with such a declaration, other major banks will shut the LRS doors for crypto investments. This will impact the value of transactions of the Indian crypto market,” the founder of the local crypto exchange commented.