Cryptocurrency adoption prohibited by Indian banks; force customers to sign contract

The Reserve Bank of India, India’s central banking institution had prohibited the banks of the country from providing any assistance or services to cryptocurrency business. Following this, the banks in India are taking things one step ahead by asking customers to sign contracts stating that they will not use cryptocurrencies of any kind as a part of their new terms and conditions of service agreements, reported

The banks are taking such steps to discourage people from adopting cryptocurrency on the whole. According to the reports, the new course of action is forcing the customers to choose between banks and crypto. The adoption of crypto is getting difficult in the country even though many hope to see cryptocurrency overtake the traditional banking system, it is tough to realize this dream due to such stringent actions.

Twitter user, @DesiCryptoHodlr tweeted an image of the terms and conditions required by one of the prominent banks, Kotak Mahindra Bank as an example of the bank’s restrictions. The image says that strict actions will be taken against those who disregard this condition. The user tweeted:

Source: Twitter

Source: Twitter

“Indian Banks now forcefully taking permission from us to ‘reserve right to close our account without further intimation’ if we deal in #cryptocurrency transactions
Ability to decide what to do with our own money is the very reason we need to invest, #BUIDL, & believe in #bitcoin”.

The bank is pressurizing the customers to declare that they “will not deal with any transactions related to Crypto-currency including Bitcoins”. It further states that the bank also reserves the right to close their account if the condition is not followed.

According to reports, similar warnings are displayed on the bank’s ATM screens:

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. For any such transactions, the bank shall be acting in accordance with the regulatory guidelines which include closing your account without further intimation.

The bank claims that it is working in accordance with the RBI regulations, and the Twitter user claimed that this is only one example of the many banks following this.

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