Major Indian bank blocks use of RBI's remittance system for crypto

A leading private sector bank in India, ICICI has updated its retail outward remittance application to include cryptocurrency.

Major Indian bank blocks use of RBI's remittance system for crypto

The bank has asked customers to declare under India’s Foreign Exchange Management Act 1999 (FEMA) that they will not use the Reserve Bank of India’s (RBI) liberalized remittance scheme for any crypto-related investments.

“The above remittance is not for investment/purchase of bitcoin/cryptocurrencies/virtual currencies (such as ethereum, ripple, litecoin, dash, peercoin, dogecoin, primecoin, chinacoin, ven, bitcoin or any other virtual currency/cryptocurrency/bitcoin),” the bank declared.

Customers must also declare that the remittance is not for any investments in a company dealing in bitcoins/cryptocurrency/virtual currencies.

Furthermore, customers must also have to declare that the source of funds for the proposed remittance is not proceeding from the redemption of investment in cryptocurrency.

ICICI Bank was among several major Indian banks that halted services to crypto customers following the RBI notice regarding its April 2018 circular that banned banks from providing services to crypto dealing.

However, the central bank clarified by issued a notice to banks stating the circular is no longer valid from the date of the supreme court judgment. The Indian supreme court quashed the circular in March last year.

Despite the country’s finance minister stating that the bill was ready for cabinet consideration, the crypto bill is still not listed in the upcoming Monsoon Session of parliament.

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