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No cards for cryptocurrency: HDFC

News Today 2018-03-14 14:35:03

No cards for cryptocurrency: HDFC

NT Bureau March 14, 2018 0

Mumbai: Following the regulatory discomfort on cryptocurrencies, second largest private sector lender HDFC Bank blocked 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.

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. 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 Jaitely’s had on 1 February 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.