Safe Banking
Be informed. Be safe!
Reserve Bank of India (RBI) has been repeatedly cautioning users, holders and traders of Virtual Currencies (VCs), including Bitcoins, about the financial, operational, legal and security related risks of dealing with such virtual currencies.
RBI has now prohibited banks from dealing in virtual currencies or providing services for facilitating any person or entity in dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase / sale of VCs. If it is found that the bank accounts are being used for the above mentioned purposes, we will be constrained to close the accounts. Accordingly, you are advised not to use Deutsche Bank accounts or cards for purchase or any kind of dealing in crypto or virtual currencies.
Top reasons not to deal in Virtual Currencies (including Bitcoin):
- RBI has advised that it has not given any licence or authorisation to any entity or company to operate such schemes or deal with Bitcoin or VC. Any user, holder, investor, trader, etc. dealing with VC will be doing so at their own risk.
- As virtual currencies are not created or traded by any authorised central registry or agency, the loss of the e-wallet (where they are stored) could result in the permanent loss of the VCs held in them.
- Payments by VCs, such as Bitcoins, take place on a peer-to-peer basis without an authorised central agency which regulates such payments. There is no established support for addressing customer problems or disputes or charge backs etc.
- There is no backing of any asset for VCs and their value is already a matter of speculation. Huge volatility in the value of VCs has been noticed in the recent past making the users exposed to potential losses on account in value.
- It is reported that VCs, such as Bitcoins, are being traded on exchange platforms whose legal status is unclear. Hence, the traders of VCs on such platforms are exposed to legal as well as financial risks.
- There have been several media reports of the usage of VCs, including Bitcoins, for illicit and illegal activities. The absence of information of counterparties in such peer-to-peer system subject the users to unintentional breaches of anti-money laundering
For more information or queries write to us at customer.care@db.com or call our phone banking team on 18602666601#.
#Customers outside India need to dial +91 22 6601 6601. Customers in Mumbai can also call at 6601 6601. Call charges apply.