Kotak Mahindra Bank’s crackdown on crypto traders seems to be reaching a new level nowadays. We had heard last year in June that the bank was sending ominous notice to crypto traders in order to discourage them from trading in virtual (aka crypto) currencies, and now the bank seems to be forcefully obtaining consent in this regard from the customers at the time of account opening. It’s unclear whether other banks are also asking for such consent or not.
This new bit of information was recently revealed by Indian CryptoGirl on Twitter. In one of her tweets she said without naming the bank that Indian banks are now forcing their customers to provide a consent that will allow the bank to close their account if they deal in cryptocurrencies. While she didn’t name the bank in her tweet, on closer inspection of the screenshot attached with her tweet we figured out that it was Kotak Mahindra Bank’s online 811 digital account opening form behind the pop-up asking for consent. In simple words, if you want to have an account with Kotak Mahindra Bank, you can’t deal with cryptocurrencies at all. At least not from that particular account, otherwise you’ll stand the risk of your account being closed and funds in it being seized without any further intimation.
Indian Banks now forcefully taking permission from us to ‘reserve right to close our account without further intimation’ if we deal in #cryptocurrency transactions
— Indian CryptoGirl (@DesiCryptoHodlr) January 9, 2019
It’s ironic to see that Kotak Mahindra Bank has integrated RippleNet with its platform, which will make use of XRP cryptocurrency for cross-border payments. However, within India they’re going as hard on crypto as possible. Asking for a forced consent in this regard is something unprecedented, which has not been done even by PSU banks that are directly under the control of the government.
ATM machines also warning
In another unprecedented development, Kotak Mahindra Bank’s ATM machines also seem to have started warning the users regarding cryptocurrency dealings. In reply to CryptoGirl’s tweet a user posted the image of an ATM machine that had a warning message regarding cryptocurrencies on screen.
In simple words, Kotak Mahindra Bank seems to be going all out against crypto. Now it’ll be interesting to see whether other banks also follow Kotak Mahindra Bank on this path or not.