Kotak Mahindra Bank — private sector bank by market cap — is allegedly requiring account holders to refrain from dealings in . The claim was made by Twitter user “Indian CryptoGirl” (@Desicryptohodlr) in a tweet Jan. 8.
According to the screenshot provided in Indian CryptoGirl’s tweet, Kotak Mahindra Bank makes explicit reference to the Reserve Bank of India’s () regulations in its apparent terms and conditions for account holders, which allegedly demand consent to the following:
“Basis [sic] the regulations issued by RBI, I hereby declare that I will not deal with any transactions related to cryptocurrency including blockchains. I also understand and agree that the bank reserves all right to close my account without further intimation in case I am found to undertake such transactions.”
In April 2018, India’s central bank, the RBI all domestic banks from providing services to crypto-related businesses, but the legal status of cryptocurrencies themselves in the country remains largely .
Multiple twitter users have to the Jan. 8 tweet by reporting further unconfirmed details of the bank’s alleged anti-crypto warnings. One user shared of what appears to be an ATM screen belonging to an unspecified bank — but which reproduces the exact wording of Kotak Mahindra’s warning against account closures without further intimation. The ATM warning apparently further explicitly states that:
“Virtual currencies (VCs) are not legal tender and do not have any regulatory permission or protection in India. We request you not to make transactions involving any VCs from any of your account/s [sic.]”
One indignant twitter user responded by Indian citizens to make a national bank run, inspired by the recent from French grassroots political movement, the Gilets Jaunes (Yellow Vests).
To press time, Indian CryptoGirl has not responded to Cointelegraph’s request for comment.
As previously reported, the status and future of cryptocurrencies in India remains. After RBI’s controversial prohibition came into effect last July, both and petitions have appealed to the courts on the grounds that the decision is .
Earlier this month, RBI its financial report for 2017-18, which concluded that crypto currently poses no threat to financial stability. Authorities across the country meanwhile to robustly warn the public against the risks associated with unregulated crypto investments, and some political voices have for the criminalization of crypto in the country outright.
Published at Fri, 11 Jan 2019 22:22:00 +0000
