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Citi India ban use of debit/credit cards to buy bitcoins

Press Trust of India  |  New Delhi 

India today banned use of its debit and credit cards for purchase of bitcoins and other cyryptocurrencies following concerns expressed by the Reserve over vitrual currencies.

India in a message to its customers said it has banned usage of its debit and credit cards for purchase or trading of virtual currencies.

"...India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, and virtual currencies," the message read.

In his Budget Speech, Minister had said the government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.

The decision, the said, comes following concerns, both globally and locally including from the RBI, cautioning the public regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with bitcoins, and virtual currencies.

Virtual currencies are stored in digital/electronic format, making them vulnerable to hacking, loss of password and malware attack which may also result in permanent loss of

The RBI has also clarified that it has not given any licence/authorisation to any entity/company to operate such schemes or deal with or any virtual currency.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 13 2018. 14:50 IST