Indian banks freezing bank accounts AGAIN !

[electronicash]

Individual banks have been closing accounts of their customers who deal with crypto all over the world and for a long time. Some banks see it as a risk that isn't worth taking. I think this just highlights how low the adoption of crypto is currently is, crypto was supposed to disrupt banks, but it's practically impossible to live without a bank account these days, especially if you try to go 100% on crypto. So, until it changes, you should be careful with your bank, research if it tolerates crypto or not, maybe get a separate account for withdrawing crypto.

i thought its already possible with the debit cards created by the crypto companies today like Binance and crypto.com so the reason why they were hyped.

seem a confusing time when governments are allowing crypto currency yet banks can somehow just block any transactions and freeze accounts. don;t it look like its the bank that run the government?

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[akram143]

Paytm accounts are often hacked and used to buy bitcoins on websites like Localbitcoin and that is the reason of the received account gets frozen when the real owner of the send account report it to the bank, which doesn't mean all the trading activity accounts will be blocked by the banks when the country allows them to do.And this problems exists everywhere that is why stop trading with random newbie unverified accounts who are the one involved in such kind of activities.

[eaLiTy]

Even though cryptocurrencies like : Bitcoins is legal in India apparently the banks do believe they have a power over the users and there have been statements from the verified users regarding:
1. Paytm freezing bank accounts which are involved in Crypto trading , OR , the accounts they suspect are involved with the trading of cryptocurrencies

I have read the news that PayTm is freezing the accounts of users that are dealing in cryptocurrencies even though there is a supreme court order but as avikz mentioned they are playing around the lack of rules and regulations and the bank has the authority to determine what they allow and what they ban and i believe there is some involvement from the government for them to ban the users dealing in cryptocurrency.

@akram143 as you mentioned there is another possibility that PayTm was used by hackers in the past to steal others account and purchase BTCitcoin and may be that is the reason behind this decision to ban anyone dealing with cryptocurrency.

[Becky666]

Any government can authorize any of her institutional arms to act according to the laws of the land, India government had since be against suspicious financial movement and this won't change in time to come. Ensuring the citizens are protected and the government can be trace to this move by India Banks.
 
Here in Nigeria, you're put on check when it come to financial transactions according to MLM act. This is normal to any government to flag any suspension transactions, so, those without any won't be flag. I was flagged by First Bank PLC but careful explanation gave me scale through and funds were released.

[maxreish]

I would still believe Paytm Indian Bank has a valid reason for freezing those user's accounts.
 It must be a suspicious activity even they had submitted cryptocurrency trading as their source of funds, banks has a way if it is true or not.
 
 On the other hand, giving the fact that some clients are having a legit income from cryptocurrency trading, Indian banks are just complying and afraid not to follow RBI's order;
 
 

The circular by the Reserve Bank of India (RBI) prohibited banks from providing service to entities dealing in crypto. After the RBI ban was lifted, several banks reportedly still refused to work with crypto businesses, including exchanges, claiming to be waiting for further instructions from the central bank

 This explains why Indian banks freezes their accounts even crypto is legal in their country.

[brightemo]

Indians are hating crypto too much

[Slow death]

Indians are hating crypto too much

you don't have to put all Indians in the same pot because it seems to me that this is the exclusive decision of a small group of bankers who look at bitcoin as something that should be destroyed by preventing people from using their banks to make transactions involving bitcoin. but this is expected when the government itself does not encourage banks to deal with bitcoin.

I was flagged by First Bank PLC but careful explanation gave me scale through and funds were released.

I wonder how can someone who makes money from signature campaign, bounty and trade, offer income statements at the bank? this is a very difficult situation to resolve especially when the person earns in US dollars and when converting to local currency it becomes a very high value higher than many minimum salaries in the country

[Fundamentals Of]

Is there any future of Bitcoins in India ?

India will be left out if they insist on going against rather than embrace Bitcoin. Sooner or later, Bitcoin will become accepted in all countries, if not accepted at least it would not be made illegal. Even the US which started early on to be a strong enemy of Bitcoin eventually realizes that they cannot stop it and they better regulate its use rather than let their citizens use it outside the bounds of law.

For me, it is just a matter of time before India will finally set the green light. After all, this is just a matter of leadership and we all know that leaders don't stay at their positions for long.

[thesmallgod]

Some of this bank fear being penalized for being involved in helping transacting money earn illegally or through a scam and which is the reason why many of them freeze an account of the customer. I have ones read about a money that was sent through Paxful transaction to a bank but later, it was discovered that the money comes from scam settlement. Such is part of the reason why they freeze accounts. If anyone has his account frozen then he should find out the reason behind it. Especially in countries where crypto is legal

[audaciousbeing]

The real cause for concern is identifying what the accounts that the banks froze have in common other than the trading of crypto currency. For the fact that moving cash is legal, there are still some regulation around that space and if anyone should move funds beyond the allowed maximum, then he should be ready to provide the necessary explanations which is the reason why despite the fact that crypto trading is legalised, it does not remove the function of the bank to ensure that the laws regulating the industry is not circumvented.

[wack slacker]

Remember that banks are under government control and if your money is in circulation for a suspicious purpose they will inevitably be under control. Bank has the right to do that, please study the laws and regulations related to cryptocurrencies.

[oprahwindfury]

Cryptocurrency in India is not prohibited and as we all know banks don't want cryptocurrency to exists.Because if they do there transaction with crypto it will be a loss for them.So it’s  better to use crypto with out giving bank any information about it.so they cant freeze  bank accounts.

[reliable]

Remember that banks are under government control and if your money is in circulation for a suspicious purpose they will inevitably be under control. Bank has the right to do that, please study the laws and regulations related to cryptocurrencies.

The crypto are not yet illegal in the country so in such case it should not be freezing it unless some of the account is suspicious and where some misconduct is happening it. rest it should still be operative and not sure why they have started freezing the accounts again. this would hurt the people and during this pandemic when people require the money the most and if account is freeze where will they go?

[lumeire]

Cryptocurrency in India is not prohibited and as we all know banks don't want cryptocurrency to exists.Because if they do there transaction with crypto it will be a loss for them.So it’s  better to use crypto with out giving bank any information about it.so they cant freeze  bank accounts.

The system doesn't work the way we want it to, banks can identify the users dealing in cryptocurrencies by checking the transaction history of the account holder and also relating it with the accounts from which the user for the funds, although the process will definitely be more complicated than written here.
Still, it is pretty unfair to have such a monarchy in a democratic country where users don't have freedom of doing transactions and having a continuous fear of their banks freezing their account for doing transactions in cryptocurrencies. Right now India is not having any restrictions on Crypto usage then why freezing the accounts of the users dealing in cryptocurrencies.
I guess now users will have to sell their coins for cash and not do any dealings in Crypto to bank accounts until the stance of the government doesn't get cleared on the legalisation of cryptocurrencies in India.

[bryant.coleman]

Paytm accounts are often hacked and used to buy bitcoins on websites like Localbitcoin and that is the reason of the received account gets frozen when the real owner of the send account report it to the bank, which doesn't mean all the trading activity accounts will be blocked by the banks when the country allows them to do.And this problems exists everywhere that is why stop trading with random newbie unverified accounts who are the one involved in such kind of activities.

I haven't heard about this, but won't be much surprised if it happens. PayTM doesn't have any additional security measures. If you can unlock the smartphone, then you can use the PayTM account which is installed in that phone.They never ask for any additional verification. Anyway, what is the use of additional features such as OTP, when the smartphone is already unlocked?

[Juggy777]

Bitcoin still has a bright future in India and other countries through like cash banks are highly regulated by the Central Bank leading to freezing of accounts in case of suspicious transactions.

@Detrix are you sure that Bitcoin has a bright future in India, because when I speak with my Indian friends and read online news from India regarding Bitcoins, they all say the same thing that Indian Government is planning to ban crypto currency trading out there. Furthermore I don’t think that Indian banks like crypto’s, hence they’re pushing the Indian government to ban crypto’s in India.

Source

https://www.moneycontrol.com/news/business/economy/india-to-ban-trade-in-cryptocurrency-government-working-on-a-law-5642461.html

https://cointelegraph.com/news/indian-banks-act-slow-to-accept-crypto-industry-despite-rbis-approval

https://www.ledgerinsights.com/india-central-bank-cryptocurrencies-threaten-banking-system/

[Vishnu.Reang]

This is strange. I know a lot of people who use their bank accounts for trading with Localbitcoins or Localcryptos. As far as I know, none of them have faced any issues with the banks. I don't know much about PayTM Savings Bank accounts, because I have never used them. I guess most of those who got banned were doing large-scale trading of cryptocurrency, unlike those who do peer-to-peer trading.

[XCANA]

Indian has been spotted with hatred for cryptocurrency and Bitcoin at large but doing this as a developing country won't help Indians from low livelihood. Government has always frowned at cryptocurrencies as illegal digital currency, hope this come to end soon, as this will have negative IMPACT on cryptocurrency price. This industry need countries like India for full fulfilment of global adoption, though this can happen with or without Indian.

[so98nn]

Indian has been spotted with hatred for cryptocurrency and Bitcoin at large but doing this as a developing country won't help Indians from low livelihood. Government has always frowned at cryptocurrencies as illegal digital currency, hope this come to end soon, as this will have negative IMPACT on cryptocurrency price. This industry need countries like India for full fulfilment of global adoption, though this can happen with or without Indian.

It is not fault of Indian government actually, but indeed the situation that exists within country. India has huge portion of rich people and most of them includes political bodies. It has been identified that many of them are hiding their assets in the form of crypto currency to overcome the tax problems. This is more or less black money and it is the reason why poor is getting poorer in the India.

Government gets affected indirectly, and it is one of the popular country in the world who had been investigated with huge amounts of black money stored in the form of cash, gold, Swiss bank accounts.

Now, crypto has given out whole new possibilities to do the same without even revealing the identity.

[HunyB]

I am also indian and using different banks for crypto currency transaction although i didn't receive any warning or my account is freeze by any that particular bank. Even though i am not using for high amount of transaction but using personally and regularly. I think users received warning if they had abruptly using and transaction are counting as greater than normal usage. Even Bitcoin has no restriction in India even bank doing enquiries and all stuff this is very serious issue.