Indian Banks Seek Regulatory Clarity Over UPI Support For Crypto Trading
Indian Banks have asked the National Payments Corporation of India (NPCI) to clarify its stance on the use of UPI and IMPS for crypto trading.
At a recent meeting, banks raised concerns over a lack of clear directives from the NPCI after the payments body asked banks to stop UPI for the trading of cryptocurrencies.
The NPCI raised questions on the acceptance of UPI for crypto trading after several crypto exchanges such as Coinbase, WazirX, and CoinDCX recently started using UPI to buy and sell cryptocurrencies. Moreover, it created confusion in the crypto community.
Indian Banks Seek Directives on UPI support for Crypto
In a recent meeting, Indian banks have asked the NPCI to clear its stance on UPI use for crypto trading after it instructed banks to block UPI for crypto transactions, reported Economic Times on April 25.
However, a notice clarifying the use of UPI seems unlikely anytime soon, as there are “no intentions of any circular,” said an NCPI official.
Commenting on a possible ban on UPI acceptance for the trading of cryptocurrencies, a banker told the Economic Times:
“If there is a formal circular to ban UPI for cryptos or VDAs, whatever is the nomenclature, the crypto industry in all likelihood would legally contest it — as they had done when RBI imposed a ban in April 2018.”
Meanwhile, bankers have also questioned the authority of nonprofit company NPCI to ban UPI as the payment framework is governed by the Reserve Bank of India (RBI). Also, there is no clarity from the NPCI over the use of IMPS for crypto trading. The vague communications and policies from the government, as well as, crypto exchanges have put the crypto community under uncertainty.
Crypto Status in India After the NPCI Statement
The acceptance of UPI brought some relief to the crypto community after the government confirmed a 30% tax and 1% TDS on cryptocurrencies. However, the NPCI statement pushed back the sentiment, which resulted in a massive decrease in crypto trading volume across exchanges in India.
- Trump Advisor Hints US Government Shutdown Could End This Week, Opening Door for XRP ETF Ruling
- Ethereum’s Vitalik Buterin Responds to Allegations of Excessive Control By ETH Inner Circle
- Solana News: Gemini Launches SOL Edition Credit Card Following XRP Card Success
- Bitget US Stock Futures Trading Volume Surpasses $200 Million
- Binance Founder CZ Predicts Bitcoin Will Flip Gold’s $30 Trillion Market
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
