SBI Cards & Payment Services Pvt. Ltd. earlier warned the customers of the risks that are associated with the cryptocurrencies. However, despite issuing the warning, the second largest issuer of credit cards in India has not yet made any move to ban its customers from purchasing bitcoin or any other virtual assets using the issued SBI credit cards.
Sometime ago SBI Card issued a warning to its customers that emphasized on the risks of purchasing crypto assets. SBI Card also repeated the perspective of the Reserve Bank of India stressing on the fact that government advisories are yet to give any authorization or licensing for any organization or entity for carrying out any virtual currencies or cryptocurrency schemes.
The announcement followed weeks after Citi India declared that it is banning the use of its debit as well as credit cards for purchasing bitcoin and any other similar type of crypto assets. According to a report, Citi India has taken a decision not to permit the use of its credit and debit cards for purchasing or even trading bitcoins, virtual currencies, and cryptocurrencies.
SBI Card Issues Notice To Card Holders
The notice says that after considering both local and global concerns, SBI Card would like to advise you (card holders) to be mindful of potential economic, financial, operational, legal, customer protection, and security-related risks that are associated in dealing with virtual currencies and cryptocurrencies. Currently, the biggest bank in India has a customer base of more than 5 million and it is the second largest credit card issuer after only HDFC Bank Limited in India.
During his recent budget speech, Finance Minister Arun Jaitley said that the government does not consider cryptocurrencies legal tender or coin and will take all the measures for eliminating the use of such crypto assets in financing illegitimate activities or as part of the payment system.
According to reports from legitimate sources, relevant institutions are presently busy formulating the long-awaited regulatory guidelines for cryptocurrencies and the industry may get the legislation to be implemented very soon.