SBI Cards & Payments Services Pvt. Ltd has issued a warning to customers about the risks linked with cryptocurrencies.
In spite of the ominous warning, the company did not make any moves to ban its clients from buying bitcoin and other digital assets with the use of SBI issued credit cards.
The warning was first reported in the Times of India.
However, SBI Card did not hesitate to restate the stance of the Reserve Bank of India, that government advisories have not issued any licensing or authorization for any entity to function in any cryptocurrency schemes or virtual currencies.
The announcement comes on the heels of Citi India barring the use of its credit and debit cards for purchasing bitcoin and other cryptocurrencies. The firm sent a release, saying:
“Citi India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, crypto-currencies, and virtual currencies.”
The notice from SBI says:
“Given concerns, both globally and locally, SBI Card would like to advise you to be mindful of potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with crypto-currencies and virtual currencies.”
SBI boasts of a huge customer base of more than 5 million, and is considered to be the second largest credit card issuer in India right behind HDFC Bank Limited.
Indian officials have conveyed that India’s much-awaited guidelines for cryptocurrencies are at the moment being worked on the respective authorities and that the industry can expect the legislation to be applied very soon.
The Chairman of the Department of Economic Affairs, Ajay Tyagi, said recently that many elements of the regulatory apparatus have already been finalized, stating:
“We have actually decided which regulator will do what and the committee should come out with the regulations very quickly.”
The impending regulation has not been warmly embraced by all members of India’s cryptocurrency authority, with many businessmen looking for means through which to buy virtual currencies in foreign markets in an attempt to skirt India’s regulatory efforts.
