Top banks have suspended some accounts of major Bitcoin exchanges in India | Photo Credit: BCCL

Mumbai: In a bid to crackdown on dubious transactions, top banks have suspended some accounts of major Bitcoin exchanges in India.

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The development has been confirmed by at least three people, as per an Economic Times report. Major banks such as the State Bank of India, Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have suspended some of the accounts belonging to major Bitcoin exchanges in India.

The report also adds that the banks have sought additional collateral damage for the fraudulent transactions from the promoters of such exchanges spread on borrowings.

Besides, the banks have also capped withdrawals from the accounts that are still operational.

A person, familiar with the development, told ET that the banks have been asking for additional collateral with 1:1 ratio since last month.

Related: Bitcoin slides 18% on crackdown fears; crypto rivals also plunge

Currently, the banks are engaged in investigating the current accounts held by top Bitcoin exchanges, confirmed another person who spoke to ET on conditions of anonymity.

It has come to light that action has been initiated against at least top 10 Bitcoin exchanges including Zebpay, Unocoin, CoinSecure, and BtcxIndia, told a few others in the know-how of the recent developments.

Promoter of Unocoin Sathvik Vishwanath said the banks have not notified the company or its promoters about the suspension of accounts.

Also read: Hackers steal cryptocurrency worth $400,000

While Vishwanath said he was not aware of the bank scrutiny, queries sent to other Bitcoin exchanges didnot elicit a response.

For people who are not familiar with the concept of Bitcoin, it is a virtual form of currency that can be used to buy products and services. People also invest in Bitcoins as it shot to fame sharply since last year.