The government in India has become very bold about their ban against the use of cryptocurrency, cracking down on private banks. Their bans have included potential legal action against private banks that decide to get involved with crypto-centric companies. In the same effort, private banks are taking a similarly aggressive stance with their customers.
One crypto influencer in India, “DesiCryptoHodlr,” posted a tweet about the experience that she had with Kotak Mahindra Bank. The bank is in the private sector in India, and they issued a notice that was rather curt to her. On May 15th, the user posted that the bank chose to block her account and has even closed her credit card facility.
Lauded as a Blockchain Pioneer by Binance, Indian CryptoGirl said that the letter was sent only two days ago by mail, warning her against purchasing cryptocurrency with that bank account. She encouraged followers to purchase Bitcoin and “be your own bank,” rather than falling under the rules of a bank that is hardly keeping up with the progress of the crypto market.
Back in 2013, the Reserve Bank of India had told the public that participating in the cryptocurrency industry poses a “security risk.” Years later, the government in the country decided that cryptocurrency would not be considered “legal tender” in India, which means that there’s no “regulatory permission or protection” for their use.
Speaking about the bank, Indian CryptoGirl said that the entity does not encourage their customers to use their credit cards or banks accounts to participate in the cryptocurrency industry, showing the notice. This user was also seemingly threatened in the process, as the bank stated that her card will be blocked if she continues to be involved with cryptocurrencies with any of the accounts she holds there.
The HDFC bank recently decided to exhibit similar behavior. The bank, which is also in the private sector, emailed their customers to request that they “clarify” their crypto transactions within 30 days. However, without any action, the account would end up being frozen, if they did not follow the not-so-optional request.