HDFC Bank blocks all its cards from being used to buy or trade cryptocurrencies | HT Tech

HDFC Bank blocks all its cards from being used to buy or trade cryptocurrencies

The move comes after multiple warnings by the RBI and the finance ministry on the non-fiat virtual currencies.

By: PRESS TRUST OF INDIA
| Updated on: Mar 13 2018, 23:05 IST
HDFC Bank has blocked its cards from being used to purchase/trade in such instruments.
HDFC Bank has blocked its cards from being used to purchase/trade in such instruments. (Reuters File Photo)

Following the regulatory discomfort on cryptocurrencies, second largest private sector lender HDFC Bank blocked on Tuesday its cards from being used to purchase/trade in such instruments.

"We have decided to not permit use of HDFC Bank credit, debit and prepaid cards towards purchase or trading of bitcoins, cryptocurrencies and virtual currencies, on merchants suspected to be dealing in crypto-currency or online foreign exchange trading or both," the bank said.

You may be interested in

MobilesTablets Laptops
23% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Vivo X100 Pro 5G
  • Asteroid Black
  • 16 GB RAM
  • 512 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

In the communique to its customers, the bank said there are "increasing global apprehensions" regarding such instruments and the Reserve Bank has also cautioned regarding the potential economic, operational, legal and security related risks associated in dealing with such currencies.

Also read
Looking for a smartphone? To check mobile finder click here.

The move comes after multiple warnings by the RBI and the finance ministry on the non-fiat virtual currencies.

Earlier this year, banks had reportedly stopped or delayed processing deposits and withdrawals in dedicated bitcoin exchanges.

Finance minister Arun Jaitley had on February 1 made the government position very clear in the Budget speech, wherein he had said such instruments were illegal and promised action to eliminate their use.

"Government does not consider crypto-currencies legal tender or coins and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system," he had said.

However, the bitcoin exchanges had reacted to it saying it is "business as usual" even after the statement and said Jaitely's comments were being misinterpreted.

"There is no change in the government stance with respect to trading cryptocurrencies. Cryptocurrency holders need not panic and the business is as usual," chief executive and co-founder of Unocoin Sathvik Vishwanath had said.

Another player Belfrics Global's chairman Praveenkumar Vijayakumar said government was taking time to understand the crypto world and the country' global share on cryptocurrency market was steadily increasing.

It can be noted that there has been huge volatility in the price of the bitcoin over the past few months, which surged to a very high level before crashing down. The bitcoins are "mined" using complex algorithms.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 13 Mar, 22:55 IST
NEXT ARTICLE BEGINS