In its recent request, the bank issued a list of their immediate transactions to cryptocurrency exchanges. During the past few months Crypto trading in India is passing through a difficult period. This year, in April, the Reserve Bank of India (RBI) had published a circular asking all banks and financial institutions to stop operations with cryptocurrencies. Nevertheless, India`s Supreme Court delayed the decision on the matter until a final hearing in July 2018.
The cryptocurrency community is now concerned on 2 significant dates (July 5 and July 20) when the cryptocurrency future in India will be defined. Despite this fact, Kotak Mahindra has gone full offensive singling out cryptocurrency traders in their bank. The bank in the circular alerts account keepers using their account for cryptocurrency trading. According to the statement, the bank will not be responsible or liable for a drop of any transactions, inconvenience, and the return of cheques or losses arising caused by the account closure.
In this regard, the bank does not encourage its customers using their accounts maintained with us for carrying out transactions involving any kind of crypto/virtual currencies and hence we request you to immediately stop transactions involving dealings in bitcoin or any kind of crypto/virtual currency from your above-mentioned account. In this case, it is observed that you have undertaken such transaction post receipt of this letter, you may treat this letter as an advance caution letter and bank will be constrained to close your account without giving any further intimation to you.
Kotak Mahindra Bank, India
While it is probably that all banks may be obliged to shutter crypto accounts after Supreme Court’s verdict, Kotak Mahindra Bank is hurrying up, threatening to terminate bank accounts of crypto traders. Even although the judgment regarding crypto trading is still under consideration in the Supreme Court, the Kotak Mahindra Bank have made its own decision.