Second largest credit card issuer in India, SBI, has made an official statement concerning the operations with the virtual currencies. The statement warns the clients of the bank of the potential financial risks involved with the purchase of any virtual currency. SBI with a client base of approximately 5 million people didn’t take extreme measures, such as Citi Bank in India.
Given concerns, both globally and locally, SBI Card would like to advise you to be mindful of potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with crypto-currencies and virtual currencies
SBI Notice quotation
Further, in the notice it says that Reserve Bank of India issued a set of recommendations and guidelines to financial institutions and public with an emphasis that no entity in India was given a permission or any kind of legislation to provide services dealing with cryptocurrencies and the respective schemes.
The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.
Finance Minister of India
India’s government is trying to formulate a regulatory basis for a still shadow area of virtual currencies.
We have actually decided which regulator will do what and the committee should come out with the regulations very quickly.
The Chairman of the Department of Economic Affairs