Received the below communication from ICICI Bank today early morning. Does this mean they will be closing the accounts of everyone involved in bitcoin trading?
We would like to bring to your notice the below important information on permissible usage of card transactions involving foreign exchange:
Under the Foreign Exchange Management Act (FEMA), 1999, a resident Indian is permitted to make only those foreign exchange transactions on ICICI Bank Cards or Account that are permissible and remittance in any form towards overseas exchange trading through internet/ electronic trading portals is not permitted.
Indian residents are therefore prohibited from trading in foreign exchange in domestic and overseas market, including binary option trading with commodities, stocks, indices, bitcoin index and forex etc.
Please make note of the prohibitions on using your ICICI Bank Cards or Account for such unauthorised transactions in contravention to the FEMA and the regulations issued thereunder and that violation(s), if any, would attract action under the extant laws and regulations against such residents.
In case such transactions are noted on your ICICI Bank Cards or Account, we shall be constrained to close your card or account without any liability or responsibility on the part of the bank.
Looking forward to your co-operation in helping us serve you better.
Sincerely,
Rohit Poddar
Head - Privilege Banking
Are u using Zebpay,Unocoin or some other international exchange? If u are using international exchange and i would advice you to use local exchange If u are using local exchange like zebpay then it doesn't come under FEMA. I am also using ICICI services but have not faced such issues. If you are using local exchange and still they are telling you about FEMA rules then you can simply go to court as i would do the same thing.