The country’s largest lender, the State Bank of India (SBI), has barred crypto exchanges from using its UPI network to receive funds.
The country’s largest lender, the State Bank of India (SBI), has barred crypto exchanges from using its UPI network to receive funds.
This becomes harder for exchanges of Indian cryptocurrency. The country’s largest lender, State Bank of India NSE 0.97% (SBI), has barred its UPI platform from receiving funding from crypto bourses.
According to payment industry sources, the bank has requested payment processors to disable SBI UPI for crypto-marketers.
Therefore, traders are unable to purchase bitcoin or any cryptocurrency through sending funds via UPI, as none of the processors that handle money for exchanges can get the cash delivered to their SBI accounts for crypto-purchases.
UPI, or Unified Payment Interface, enables all bank account holders without bank account information or net banking user ID or password to send and receive money on their smartphones.
Several banks have been tackling the movement of funds in connection with crypto trades in the last six months. One of the few payment options left for crypto exchanges has been cut out following SBI’s latest move.
“An SBI spokesperson noted that the bank’s policy is not to comment on topics about the subject.
The move has already affected the largest local crypto stock market, WazirX, with the processing agency obeying the SBI direction.
Circles of the industry indicated that payment processors could also stop accepting payment for other exchanges unless SBI rethinks this.
WazirX CEO Nischal Shetty stated while contacting, “We are attempting to talk about and put our points on SBI. WazirX complies with KYC (know your customer) standards and AML (anti-wash) policy.
Millions of Indians are currently influenced by SBI as the main crypto-exchange in India.”
Banks can use the State Bank of India’s Cue
WazirX’s Nischal Shetty said, “We look forward shortly to a positive outcome.
Many WazirX traders use one of the e-wallet providers for transactions when UPI is prohibited.
In the absence of other payment methods such as credit and debit cards, NEFT (national electronic funds transfers), and net banking, merchants choose UPI because of wallet charges and funds transfer limits.
Many banks may be reluctant to use their separate UPI platforms onboard crypto trades, according to the SBI decisions.
Undeclared Position
Although RBI has given no clear instructions to discontinue payments for crypto traders, banks and numerous payment gates have felt the unregulated crypto-regulatory attitude.
RBI officials raised worries about cryptocurrencies during discussions, say top bankers.
Significantly, the national umbrella body, the NPCI, which has designed the UPI, refused to ban financial movements to trade cryptocurrencies.
