India has maintained quite a stringent stance against Bitcoin and digital assets in general. In late 2017, during Bitcoin’s epic rise to around $20,000, the Reserve Bank of India (RBI) began to squash cryptocurrency transactions by outlawing banking transactions with crypto traders. However, in March this year, the Supreme Court intervened, throwing out the ban.
As digital transactions begin to pick up once again in the country, it appears banks in the country are once again interested in doing business with some crypto exchanges and their customers.
Top financial institutions such as ICICI Bank, State Bank of India, Yes Bank, and HDFC Bank have started allowing customers to use their bank accounts to fund crypto trading. Furthermore, these banks are willing to offer a plethora of facilities to cryptocurrency exchanges, sources familiar with the Indian crypto landscape told The Economic Times.
The new love affair may not be unconnected with the recent price momentum around Bitcoin. The digital asset has risen from around $12,000 in October to over $19,000 within the last two months. Although it appears there is a correction going on, this is not stopping institutional investors from getting in on the action.
But while banks are beginning to service crypto traders and exchanges, the stance of the Indian government remains unclear. As of September, there were still rumors of a possible ban on cryptocurrency trading in the country.