A few week after the Reserve Bank of India de-authorized its connected banks to stop purchasing cryptocurrencies, State Bank of India has finally jumped on the no-purchase-of-cryptocurrencies wagon.
On the evening of 24th April, the national bank sent a mailer to its users informing them that the credit card will no longer be used to purchase cryptocurrencies. The mailer read,
“As per RBI, there are increasing concerns of consumer protection, market integrity, money laundering etc, caused by Virtual Currencies (VCs), also referred as cryptocurrencies and crypto assets. Hence, it has announced that with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or selling virtual currencies.”
To ensure the security of our customers and adhering to RBI policies, SBI card will not allow purchase or trading of such cryptocurrency or any virtual currency.
As a mater of fact, the SBI putting a ban on cryptocurrency dealings shouldn’t come as a surprise. In February, SBI had issued a cautionary and advisory note relating to Bitcoin trading to its credit card customers. It said,
“given concerns, both globally and locally, SBI Card would like to advise you to be mindful of potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with cryptocurrencies and virtual currencies.”
On the other hand, RBI bringing out an effective ban on cryptocurrency dealings has encouraged many financial institutions in the country to ban on trading cryptocurrencies.
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