Current Affairs - Banking - Discussion

Citi Bank, India has issued an email notification to its customers stating that credit and debit cards cannot be used to purchase cryptocurrencies. In the email notification, Citi Bank India has cited global and local concerns (including from the Reserve Bank of India) about dealing in cryptocurrencies (including Bitcoin) and has cautioned its customers that such transactions involves potential economic, financial, operational, legal, customer protection and security related risks. Earlier, in January 2017, RBI had warned banks about cryptocurrencies and had directed them to step up scrutiny of financial transactions by companies and exchanges involved in the trade of Bitcoins and other cryptocurrencies. Cryptocurrencies including Bitcoin are decentralised digital currencies which are not backed by any Sovereign Government, Central Bank or monetary authority.