Indian banking giant Kotak Mahindra Bank has come under sharp criticism after users learned that it is asking customers signing up for bank accounts to make a declaration that they will not trade cryptocurrencies First pointed by the Indian CryptoGirl on Twitter, the bank is asking customers to declare that they will not deal with any transactions related to cryptocurrency. They have also said that the bank reserves the right to close bank accounts without intimation if users are found trading cryptocurrencies.
Another user Vivek Macha also pointed out that the bank has not only been doing it with new bank account
While RBI asked banks to stop providing services to cryptocurrency exchanges, it does seem like an overkill on part of the banks to stop customers from using their own money in the way they want. Cryptocurrency trading is not illegal in India, and it is not acceptable for a bank to force such a declaration on customers.
The move has drawn sharp reactions from everyone in the cryptocurrency community. Crypto evangelist Anthony Pompliano aka ‘Pomp’ tweeted:
Kotak Mahindra Bank has shown exactly what’s wrong with the centralised banking systems of the world today. They are stopping users from spending their own money and are also threatening to arbitrarily shut bank accounts. Why should we even engage with such businesses? Cryptocurrencies will disrupt this centralised control and give users more control of their own money. It’s only a matter of time!