Indian Banks Still Cryptophobic Despite RBI's Approval

It has been 3 months since RBI lifted the ban on cryptocurrencies in India but most of the banks are still reluctant to provide services. A friend of mine wanted to create a new account in some private bank and he had to check a statement that said "I will not indulge in any crypto activity and will not use my account for crypto transactions". Now, this is not the exact sentence as I don't remember that but that's what they wanted to convey.

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India is a country with a population of over 1.3 billion people and India has a young demographic dividend meaning that the majority of Indian population is young. The young population speaks volumes of the potential of crypto in India as the younger population is more likely to adapt to new technologies far quicker than the older generations. There are more than 5 million Indian people involved in crypto. The number is very low considering the population but the future of crypto has been very uncertain right from the start and for that Indians shouldn't be blamed.

After the ban was lifted by RBI, there has been a huge spike in trading volumes on some reputed exchanges like CoinDCX, WazirX, and BitBns. Coinbase recently invested in CoinDCX while Binance acquired WazirX earlier this year. These investments in Indian exchanges by crypto giants speak for the potential of crypto in India.

The banks have been reluctant to provide services to the customers dealing in crypto transactions. There is speculation that this could be due to the fact that there is a lack of knowledge and understanding among the banks regarding crypto or they are deliberately doing this as they feel that crypto is a threat to the existence of commercial banks. I think the latter reason is more relevant here and I think that banks are doing this on purpose in a move to safeguard their own interests.

There is also a draft law, hanging over the heads of Indians that seeks to ban crypto once and for all. It seeks to penalize people dealing in crypto heavily by imposing huge fines and even a jail term of up to 10 years. That is extreme and very unfortunate and it only speaks of the ignorant people running the government.

While this ban is still hanging over the heads of Indian crypto enthusiasts, they are still hopeful of a bright future. That's the only thing they can do right now, be optimistic and hope for the best.

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