IDFC First Bankhas temporarily halted services to crypto companies as it explores ‘enhanced due diligence.’
- IDFC First Bank isn’t the only one, as ICICI Bank, Yes Bank, and Paytm Payments Bank have taken similar decisions since May.
- Cryptocurrencies were banned by the Reserve Bank of India (RBI) in 2018, but India’s top court overturned the decision in 2020.
- For banks, cryptocurrencies are a concern since they’re often a preferred instrument for money laundering, illegal purchases, and transactions relating to contraband.
A host of Indian banks are reluctant to service the crypto industry and have opted to take matters into their own hands even though there is no official ban in place. The latest institution to reportedly join the bandwagon is IDFC First Bank. It has halted services to crypto companies sometime during the last one week, sources told Livemint.
The report claims that the move is temporary while the bank explores ‘enhanced due diligence’ regarding banking support to crypto exchanges.
IDFC First Bank isn’t the only one to keep its distance from the volatile markets. ICICI Bank, Yes Bank, and Paytm Payments Bank have taken similar decisions since May.
Big wigs HDFC Bank and State Bank of India (SBI) have also cautioned their users against the risks of dealing in unregulated digital currencies like Bitcoin.
Such moves further add to the confusion for customers