After a strict diktat from the central bank itself lenders are warning customers to curb dealings with cryptocurrencies.
Leading banks such as SBI, HDFC Bank have sent notices to customers stating "Usage of credit card for transactions of virtual currency…will lead to suspension/cancellation of Card.” The clampdown asks for details on dealings as they also asked customers to "clarify the nature of these transactions…within 30 days." as per ET.
The bankers are working on unofficial guidelines given by the RBI as currently dealing in cryptocurrency in India is not illegal. The Supreme Court in February 2020 struck down the RBI circular banning the blockchain tokens after a petition by Internet and Mobile Association of India (IAMAI) and crypto exchanges against the move.