HDFC warns its customers via email regarding trading in cryptocurrencies

HDFC bank, has taken down its earlier communication with its customers after RBI’s clarification on cryptocurrency. It had sent cautionary mail to some of its customers that warned them against using the bank service in trading in cryptocurrencies.

The Bank has issued fresh email that requested the customers to ignore the earlier emails considering the the clarification from the Reserve Bank of India. On May 31, RBI resolved that the RBI’s 2018 circular on virtual currencies is invalid following a Supreme Court Order.

On May 28,2021 HDFC Bank sent emails subjected, “caution advice for dealing in virtual currencies.” The RBI cleared that in March 2020, the 2018’s circular has been put down by the supreme court. The RBI stated that the circular is not valid from the date of SC order and cannot be cited or quoted from.

However, the central bank, demanded banks to carry out the necessary customer due diligence process in line with regulations governing standards for Know Your Customer (KYC), Anti Money Laundering (AML), Combating of Financing terrorism (CFT) and obligations of regulated entities under the prevention of Money Laundering Act,(PMLA) 2002. RBI further added that banks need to ensure compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances. RBI circular,  ‘Customer Due Diligence for transactions in Virtual Currencies ‘ followed when major Indian Banks have started warning customers against their services to trade in cryptocurrencies.

As per reports, in the fresh email HDFC Bank wrote, ” In the light of the advisory issued by the RBI, we request you to ignore our earlier communication dated May 28,2021. Earlier in its taken down email, HDFC informed to its customers that it had observed the accounts reflects probable virtual currency transaction which are not permitted in the RBI guidelines.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More