Some of the largest banks in India have fallen by over 40% in the last year since the Reserve Bank of India (RBI) decided to ban banks from offering services to crypto-related companies.
During that time, Bitcoin surged by around 24%, which shows that the virtual currency was a better investment than traditional banks in the country.
Bank In India Fall After Ban on Crypto
Since July 5th, 2018, when the central bank of India ruled banks cannot offer services to crypto-related firms, bank stocks in the country fell by around 40%.
Cryptocurrency exchanges were the most affected institutions with the current ban. Several exchange platforms left the country, while many others stopped operating.
This came into effect after the RBI issued a circular that banned all financial institutions from providing services dealing with cryptocurrencies.
Since that moment, Yes Bank lost 88% of its value, followed by Andhra Bank with a fall of 48%, or Corp Bank experiencing a share price drop of 43%. Union Bank, OBC Bank, and Canara Bank fell 39%, 29% and 28% respectively.
Public Sector Bank share price since July 5th '18 (date of RBI Crypto Bank Ban)
Yes Bank -88%
Andhra Bank -48%
Corp Bank -43%
Union Bank -39%
OBC Bank -29%
Canara Bank -28%#Bitcoin +29%
Which investment looks like a ponzi scheme to you? #IndiaWantsCrypto
— Shalini⚡ (@DesiCryptoHodlr) October 13, 2019
Meanwhile, Bitcoin (BTC), the largest cryptocurrency in the world, experienced a price increase of 24% since July 5th. The cryptocurrency moved from $6,750 to $8,400.
Other cryptocurrencies have also expanded in the market, growing even faster than Bitcoin. However, it is not easy to always select the right altcoin to register more significant gains than only investing in Bitcoin.
India Wants Crypto
Indians clearly want to have access to virtual currencies and to professional crypto-related services. The bank established by the RBI has affected the quality of the services offered by companies in the country.
Many exchanges in the country moved abroad to keep their operations running, while others decided to stop operating and offering services to users.
The restrictive regulatory environment has affected the industry and the expansion of the crypto market in one of the most powerful countries in the world.
LearnBonds reported a few days ago that future investments of high net worth (HNW) individuals in India are expected to grow by 9.6% in the cryptocurrency market during the next three years.
As the number of HNW individuals continues growing, it is also expected for the crypto market to expand in the country as well.
It is worth mentioning that HNW Indians are also planning to increase their investments in stocks and fixed income.
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