HDFC Bank has asked its customers to ignore its previous warning on cryptocurrency transactions. The warning had earlier cited a circular by the Reserve Bank of India that dates back to 2018. In its recent mail to customers, the bank said that its earlier caution needs to be ignored. It again cited RBI circular from earlier this week that stated that banks cannot cite the 2018 order.
"We wish to update you that in light of the advisory issued by RBI vide their Circular DOR. AML.REC 18/14.01.001/2021-22 dated May 31, 2021 on 'Customer Due Diligence for transactions in Virtual Currencies', we request you to ignore our earlier communication dated May 28, 2021. Inconvenience caused is regretted," it said in its new mail.
HDFC Bank, Indias largest private sector bank, just told its clients to ignore their previous warning about Virtual Currency use! pic.twitter.com/tGlLUlmOG7Documenting Bitcoin (@DocumentingBTC) June 3, 2021
The May 28 circular stated that according to RBI, regulated entities cannot deal with virtual currencies or provide services for facilitating dealing with virtual currencies to any person or entity. The bank urged its customers who used its services for cryptocurrency transactions to visit the nearest branch within 30 days of the communication to clarify the nature of these transactions. "In case we do not hear from you, the bank will be compelled to restrict transactions in your account without any further notice," the mail said.
@HDFC_Bank I received an email withdrawal of banking services because of crypto. Email cites 2018 RBI guidelines which quashed by Supreme Court last year. Also how rational is it to ask a customer to show up physically at a branch in the middle of a pandemicAvinash (@S2NLP) May 28, 2021
Please help @RBI pic.twitter.com/UsRaKIxODL
The RBI, on May 31, said that its 2018 circular was no longer valid and barred banks from citing it. "Such references to the above circular by banks or regulated entities are not in order as this circular was set aside by the Hon'ble Supreme Court on March 04, 2020," it said.
The issue was flagged via social media when investors said several private and public sector banks, including HDFC Bank, warned and denied digital currency exchanges' services citing the RBI's old circular.
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