NPCI running UPI rejects ban on cryptocurrency trading in India

As per Cryptocurrency news, the National Payments Corporation of India (NPCI), a national payments agency in India, has rejected the ban on cryptocurrency transactions. The bank is then responsible for deciding to ban cryptocurrency transactions. Banks should make decisions based on recommendations from the legal and compliance departments.

When many banks limit the settlement of cryptocurrency transactions, NPCI’s recommendations are important. According to an Economic Times report, around 60 banks are blacklisting payment gateway operators to merchants participating in cryptocurrency transactions. These banks prevent customers from using online money transfer methods such as online banking and UPI to trade cryptocurrencies.

Decision From NCPI

In cryptocurrency news NPCI’s decision to limit the settlement of cryptocurrency transactions on UPI and RuPay cards still applies to all banks, and investors rarely have the option of choosing such a transaction. Bank users who prohibit encrypted transactions cannot use online banking or UPI cards, but some banks are allowed, so the transaction continues. However, how long this will lead is not yet known.

The NPCI decision was taken by the Supreme Court of the Reserve Bank of India, an order retained from April 2018, prohibiting banks or financial firms from “providing services to effect or facilitate virtual currency transactions To anyone who uses cryptocurrency transactions. March 2020 judgment. NCPI did not halt the transaction because the Central Bank of India did not give any instructions after the Supreme Court ruling.

Each bank has a different view of crypto transactions based on its risk assessment. Ashish Mehta, the co-founder of DigitX, said banks that prohibited payment for these transactions after the Supreme Court ruling were outside their constitutional rights. Exchange is a service platform that can provide a marketplace for those willing to buy and sell in a secure environment. This is not a direct sale or sale of such assets. He added that denying or delaying support for such trade is damaging to the economy as a whole.

In this case, traders rely on other banks that accept crypto trading or use inefficient money movement options such as IMPS, RTGS, NEFT, which are rarely used on stock, forex or foreign exchange platforms. ‘exchange. If the bank does not support these transactions, it is difficult for investors to sell these assets. While it is possible to sell scattered currencies to overseas buyers through peer transactions, this will lower the price and increase the cost of currency conversion. These transactions were raised by the tax authorities.