HDFC Bank Draws Back Crypto Warning Post RBI Clarification

The private sector lender HDFC Bank has asked its customers to ignore its earlier correspondence warning them against cryptocurrency dealings. The communication cited the RBI's 2018 circular that was later struck down by the apex court in the year 2020.

Now after the RBI has cleared the air around cryptocurrency earlier this week and asked financial institutions not to cite the 2018 circular, HDFC Bank has sent a mail across to its customers which as per a leading business dailies report said that "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"."Inconvenience caused is regretted", added the bank.

The RBI advisory was hailed by the different stakeholders of the nascent cryptocurrency industry. For restoring banking access to cryptocurrency investors, cryptocurrency exchanges in the country approached banks as well as payment entities after the RBI came up the clarification on the digital tokens.

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