Indian banks are “forcing” their clients to sign a contract that says that they will not be using Bitcoin or any other cryptocurrencies. In addition, banks in India are now discouraged from providing their services to crypto-related businesses.
What the Reserve Bank of India is actually trying to do is make people choose between the traditional banking methods and the ever-growing cryptocurrency services. While India has always been a “hostile” place for cryptocurrency growth, such a drastic measure has not been taken so far.
More interestingly, if customers of banks are found to be using Bitcoin or any other alt coin, their bank accounts can be suspended.
According to a Twitter account, the statement that clients need to sign states the following:
Basis the regulations issued by RBI, I hereby declare that I will not deal with any transactions related to Crypto-currency including Bitcoins. I also understand and agree that the Bank reserves all right to close my account without further intimation in case I am found to undertake such transactions.
ATMs in India have similar messages appear whenever a client initiates any type of operation.
India’s primary concern is related to the price volatility and security related to the transactions with Bitcoin and other alt coins. While the country is hoping that in a few years cryptocurrencies will become the regular “money”, the country is not ready yet to regulate the immature crypto market and is taking serious steps towards their eradication.