State Bank of India Blocks Payments to Cryptocurrency Exchanges on UPI Platform – Finance Bitcoin News

State Bank of India SBI Blocks Funds to Crypto Exchanges on UPI Platform


State Bank of India (SBI) has reportedly blocked payments to cryptocurrency exchanges using its Unified Payments Interface (UPI). Payment processors have been told to disable the bank’s UPI for crypto merchants.

Payment Processors Instructed to Disable SBI UPI for Crypto Firms

State Bank of India, the country’s largest bank, has reportedly “blocked the receipt of funds by crypto bourses on its UPI platform,” the Economic Times reported Wednesday, citing sources in the payments industry.

Unified Payments Interface (UPI) is an instant real-time payment system developed by the National Payments Corporation of India (NPCI) to facilitate interbank transactions through mobile phones. The UPI payment system is regulated and supervised by India’s central bank, the Reserve Bank of India (RBI). According to the publication:

The bank has told payment processors to disable SBI UPI for crypto merchants.

This means SBI bank customers cannot transfer funds via UPI to crypto exchanges to buy cryptocurrencies, including bitcoin.

bybit

An SBI spokesperson was quoted as saying: “It is the policy of the bank not to comment upon matters relating to the subject matter.”

Several banks in India have been clamping down on fund transfers to crypto exchanges. The NPCI, however, said in May that it will not block payments to crypto companies using UPI. Instead, it advised banks to make their own decisions whether to allow transactions involving cryptocurrencies based on their own risk assessment.

Now that SBI has made its decision, many other banks may be reluctant to onboard crypto merchants on their respective UPI platforms, the publication conveyed.

One of the largest Indian cryptocurrency exchanges, Wazirx, has already been impacted. CEO Nischal Shetty told the publication: “We’re trying to discuss and put forward our points to SBI. Wazirx follows KYC (know your customer) norms and AML (anti-money laundering) policies. Being the largest crypto exchange in India, millions of Indians are currently affected due to this move by SBI.”

What do you think about State Bank of India blocking payments to crypto exchanges? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currency to display

Pin It on Pinterest