Country’s largest lender SBI, has eventually blocked the receipt of funds by Crypto Exchanges on its UPI platform. To this, bank has put strict instructions for payment processors for disabling SBI UPI for the merchants of Crypto. So, it has become difficult for the Indian crypto currency exchanges to work smoothly as they did.
Problems Faced Cause Of Bank’s Withdrawal
Traders weren’t allowed for buying Bitcoin or even any other cryptocurrency with the aid of funds transfer through UPI, as no processor incharge of exchanges would be allowed to receive money which would be send for crypto purchases on their respective SBI accounts.UPI’s Role
Unified Payment Interface facilitates every bank account holder for sending and receiving money from their smartphones without even entering bank account details or even using userID and password of net banking.
Fund transfers have slowed down in last six months as various banks have disabled transfers linked with crypto trades and to put ‘cherry on top’, SBI’s decision had put a stop on left payment avenues even for crypto exchanges. To this, SBI’s spokesman had profoundly stated that “ The Policy of the bank is not to comment on matters relating to subject matter”.
One of the largest Crypto Exchange ‘WazirX’ has been affected by this sudden decision of the SBI Bank. Further to this, the industry officials also conveyed the message that payment processors might stop accepting payment of other exchanges too.
To SBI’s decision, WazirX CEO also said that they were also trying hard to put fourth their say to SBI as WazirX follows KYC norms and also AML( anti- money laundering)
Policies too. As WazirX is the largest crypto exchange in India, so huge number of Indians have been affected cause of such a decision taken by SBI.
Still there is a hope for change soon as thought off by Nischal Shetty (CEO WazirX). As the UPI is blocked so many of the users of WazirX have shifted their transactions to e-wallet. Also it is to be noted that traders of WazirX are taking this step due to absence of UPI as they prefer UPI over other payment modes as NEFT, DEBIT or CREDIT Cards cause of limitations of fund transfers attached with it and charges attached with use of wallet.
Various banks and payment gateways are very much aware of the hidden regulatory stance on cryptos, although there is still no clear guidelines from RBI for disallowing payments for trading with crypto. Senior bankers have mentioned for the same that RBI officials have voiced their reservations on crypto.
Well there is a good news with SBI ‘s action that the Domestic Umbrella Body National Payments Corporation Of India (NPCI)which is responsible for UPI’s development, has eventually refused to block the funding for trading with cryptocurrency.
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