Reserve Bank of India is reportedly forcing the customers of commercial banks to abandon bitcoin and any other digital currencies or performing any business activity that is related to digital currencies. If a customer wants to open up a new bank account in any commercial bank in the nation, he is forced to sign the documents which read that they shall not deal in any cryptocurrency transactions from their bank accounts. If the customer deal in any such transactions which related to bitcoin or any other digital currencies then their respective bank accounts shall be closed immediately without any prior notice by the bank. The same notice goes for the already existing customers of all commercial banks in India.
Last year in July, the Reserve Bank of India ordered all financial institutions in the nation including all private and government commercial banks not to deal in any cryptocurrency related transactions which led to the closure of all bitcoin and cryptocurrency exchanges in the country to shut down their operations. Zebpay, which was reportedly the largest bitcoin exchange in the country had to shift its operations to Europe amidst the ban. Also last year, the founders Unocoin which was of one of the largest cryptocurrency exchange in India were arrested for opening up a bitcoin atm in Bangalore without the permission of any government authorities. However, they later released on bail but the case is still pending in the court of law.
According to the Reserve Bank of India, with banning the dealing of cryptocurrencies like bitcoin they are raising concerns of consumer protection, market integrity and money laundering in India.
All commercial banks have now ordered their customers to not deal in any transaction which is related to cryptocurrencies such as bitcoin. Banks are informing their customers through emails, messages as well as through bank’s atm machines. The bank officials are regularly monitoring transactions of the customers to check if there are any crypto related transactions.
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