Indian banks have raised concerns over the crypto UPI restrictions imposed by the NPCI.

Indian banks have expressed concerns over the restrictions crypto UPI imposed by the National Payments Corporation of India, or NPCIa specialized division of the Reserve bank of India which falls under the purview of the Ministry of Finance. The banks asked official ratings at NPCI.

Soon a written opinion of the NPCI ?

Many banks have stopped using UPI or Unified Payments Interface for settling merchant transactions from cryptoaccording to the “verbal instructions” of the NPCI. UPI payments do not require online banking passwords or other details to complete the transaction and can be made using a smartphone.

A manager of NPCI told local media that the bank had asked the NPCI to release an official statement, but it doesn’t look like that will be happening anytime soon. He added that there was “no intention of notice”.

Bank officials, on the other hand, claim that the reluctance of NPCI stems from concerns concerning the negative reactions of the banking community and cryptoas well as legal complications.

A bank official added: “If there is an official announcement banning UPI from cryptocurrencies or VDAsregardless of the denomination, the cryptocurrency industry can legally challenge it, as did the RBI when it imposed the ban in April 2018.

See more: Crypto-asset manager Hashdex is approved as a crypto ETP issuer in Switzerland.

The removal of the UPI system from the stock exchange Coinbase

After a high-profile launch of its platform in India and the addition of UPI as a payment method, the largest US exchange Coinbase ceased to operate in the country just days after launch. The exchange said it was working with the NPCI to “ensure it meets local expectations and industry standards”.

Read more: The suspension of Coinbase’s purchase service through the UPI system in India.

Commenting on the restrictions imposed on UPI, a bank official said: “We do not fully understand the decision of the NPCI. Although it unofficially restricts UPI (for crypto exchanges)she is silent on theIMPS. »

As a reminder, IMPSMoment payment Service, is a real-time payment service provided by the authorities to all bank account holders in India.

Thus, the manager pointed out: “This was also brought up in the meeting… So we wonder if theIMPS can be used to transfer funds to a crypto platform? We don’t know, although I have a more fundamental question, the NPCI authorizesIs there an informal ban on UPI when the framework for payments is governed by the Reserve bank of India (RBI) ? »

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Indian banks have raised concerns over the crypto UPI restrictions imposed by the NPCI.

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