According to the email dated February 13, Citibank banned the opportunity to use debit and credit cards in order to buy cryptocurrencies.
The email stated that the Reserve Bank of India, cautioning members of the public regarding the potential economic, financial, operational, legal, customer protection, and security-related risks associated with dealing with bitcoins, cryptocurrencies, and virtual currencies, Citi India has decided to not permit use of its credit and debit cards towards purchase or trading of such cryptocurrencies.
In India, Citibank banned cryptocurrency-related transactions both on credit and debit cards. By contrast, the US Citibank forbade customers from borrowing money only on credit cards for such purchases.
Consequently, this case of banned cryptocurrency-related transactions isn’t the first. Banks like Lloyds, JP Morgan Chase & Co, and Bank of America, too, forbidden customers from using credit cards issued by them to buy cryptocurrencies. More than that, India’s income-tax department has also issued notices to about 100,000 such investors, seeking to tax their profits.