RBI prohibits dealing in Virtual Currencies

RBI prohibits dealing in Virtual Currencies

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RBI prohibits dealing in Virtual Currencies
Dear Customer,

We would like to bring to your attention that the Reserve Bank of India has a clear stance on Virtual Currencies (VCs) – that these currencies do not have any regulatory permission or protection in India.

In its latest circular (dated April 6, 2018), the RBI has directed that the entities that it regulates shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs. These services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase / sale of VCs.

We here at Kotak Mahindra Bank request you not to make any transaction involving virtual currencies from your bank account. However, if done so, under regulatory guidelines, we would need to close your account without further intimation.

We value our relationship with you and for further clarification; reach out to your Relationship Manager or Branch Manager.

Warm regards,
Team Kotak Mahindra Bank

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