Citi India bans purchase of bitcoins using debit and credit cards

Citi India has banned the purchase or trading of virtual cryptocurrencies using debit and credit cards. Citi, the multinational bank joins other banks such as SBI, ICICI Bank, HDFC Bank, Axis Bank and Yes Bank suspended accounts of major bitcoin exchanges in the country.

The bank said, "Given concerns, both globally and locally including from the Reserve Bank of India, cautioning members of the public regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with bitcoins, cryptocurrencies, and virtual currencies." The bank further added, "Citi India has decided to not permit the use of its credit and debit cards towards purchase or trading of such bitcoins, cryptocurrencies, and virtual currencies."

"It has not given any license/ authorization to any entity/company to operate such schemes or deal with bitcoin or any virtual currency," RBI said.

In the Union Budget this year, Finance Minister Arun Jaitley reiterated the government's earlier stand that cryptocurrencies were not a legal tender in India and went a step ahead in stating that steps would be taken to eliminate it.