In March the Supreme Court of India overruled the crypto banking ban, meaning that banks could provide services to crypto related individuals and corporations. This was a major victory for the crypto space in India, since the Reserve Bank of India’s April 2018 crypto ban had caused all centralized crypto exchanges to flee the country, and made it difficult to conduct any sort of crypto business. However, despite the ban being overruled by the Supreme Court of India, Indian banks are still discriminating against crypto

For example, banks in India are closing accounts related to peer to peer crypto trading activity, as well as rejecting international debit/credit card purchases of crypto. Further, banks are commonly blocking international wire transfers related to crypto. 

If this sounds extremely familiar, it is because banks are doing the same thing in the United States. Although cryptocurrency is 100% legal in the United States, American banks commonly equate crypto with money laundering and crime, and many major banks instantaneously close any accounts related to crypto.

In India the banks are using the excuse that they are waiting on the Reserve Bank of India to issue updated crypto guidance. But the fact of the matter is that the Reserve Bank of India is not required to issue such guidance and therefore this is an excuse that can be used by Indian banks indefinitely in order to stifle crypto activity. 

Ultimately, the anti-crypto sentiment from banks in India and the United States shows that no matter where crypto users are, banks will always have an excuse to stifle crypto related accounts, even if crypto is 100% legal.