Indian Bank Unilaterally Closes Account Of Customers Dealing In Cryptos January 16, 2019 January 16, 2019 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsJanuary 16, 2019 by Kelly Cromley

Indian Bank Unilaterally Closes Account Of Customers Dealing In Cryptos

Kotak Mahindra Bank, the major Indian private retail bank, has issued a notice to many of its account owners in an effort to repress crypto-related transactions by “Termination of Account.” The report was published on Twitter by one of the country’s crypto enthusiasts.

The official notice states “On review of the transactions done in your above-mentioned account, we have noticed that you have undertaken online transaction/s involving dealings in Bitcoin or a virtual currency.”

Furthermore it states “In this regards, you are requested to visit any of our branches to close your above-mentioned account. In case you fail to close the account within 30 days from the date of this letter, Bank shall be constrained to close the account.”

On January 9, a twiterati going by the name Indian CryptoGirl indicated that Kotak Mahindra Bank forcibly takes consent from its clients to “reserve right to close” any account without providing any kind of clarification.

Indian CryptoGirl says “Kotak Mahindra Bank Limited is one of the largest Indian banks. They have started to show this notice on account creation since past 1 month. This message comes as a ‘one last check’ before account creation and the cryptocurrency tickbox cannot be skipped or unchecked. As a result, to create an account with the bank, we have to agree to the message. Else we cannot begin any online banking service with the bank.”

In its notice, the bank justified its intention to prohibit all banks from interacting with any cryptocurrency company in the country, in accordance with the operational criteria laid down by the Reserve Bank of India at the end of 2018. Digibank is also taking appropriate steps, and sends notices to clients dealing directly in cryptocurrencies, a DBS mobile banking platform in India.
Another Twitter user called VivekMacha also warns against transactions related to cryptography, which is flashed by a Kotak Mahindra ATM. The crypto scene today is more turbulent in India than ever before.

The Central Bank prohibited any bank from dealing with cryptocurrencies or crypto-related transactions after the Indian Finance Minister declared cryptos as illegal tender. Many startup crypto companies shifted base elsewhere because of this.

However, some crypto-enterprises formed a syndicate and requested the apex court in the country to intervene against the decision of the country’s central bank. The case remains before the court. In October, Unocoin, a leading Bitcoin exchange in the country, deployed a Bitcoin ATM at one of the country’s shopping malls. However, the authorities registered a lawsuit against Unocoin weeks after the installation for establishing the ATM without permission and also arrested a co-founder of the company.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.