Leading banks such as State Bank of India (SBI), HDFC Bank, Axis Bank and ICICI Bank have told cryptocurrency exchanges that services related to trading are unlikely to resume immediately.
Even after a clarification by the Reserve Bank of India (RBI), top lenders are hesitant to let cryptocurrency exchanges and traders open accounts, The Economic Times has reported.
Also read: RBI clarifies on 2018 cryptocurrency circular, asks banks to carry out customer due diligence
Some exchanges believe that smaller banks might do business with them, the report said.
“This is what happened after the 2020 Supreme Court ruling. Small banks came first, then the larger banks,” a source told the publication.
The central bank, on May 31, clarified that banks and other regulated entities could not cite its 2018 circular, which had barred banks from facilitating cryptocurrency transactions.
The RBI said this circular was not valid since it was quashed by the Supreme Court on March 4, 2020.
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