HDFC Bank Regrets on Crypto Warnings After RBI’s Circular

Finally, HDFC Bank has officially asked customers to ignore their previous communication in which they warn about dealing in cryptocurrencies.

HDFC Bank warned their customers for dealing in cryptocurrencies citing a 2018 circular by the Reserve Bank of India (RBI). However, that circular was set aside by the Supreme Court of India in 2020.

Here is the exact mail copy that HDFC bank has sent to his customers,

“We wish to update you that in the light of the advisory issued by RBI…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,” according to the email. “Inconvenience caused is regretted.”

HDFC Bank regretted this after the RBI’s circular that was published on May 21st. The circular clearly says, “Such references to the above circular by banks/ regulated entities are not in order as this  circular was set aside by the Hon’ble Supreme Court on March 04, 2020, in the matter of Writ Petition (Civil) No.528 of 2018 (Internet and Mobile Association of India v. Reserve Bank of India).”

“As such, in view of the order of the Hon’ble Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.”

Several banks like ICICI Bank, Yes Bank and IndusInd Bank, have stopped their support to provide rupee deposit on cryptocurrency exchanges. Now let’s see what after this RBI’s circular? Stay tuned with us for the latest update from the crypto industry.