State Bank of India blocks payments to cryptocurrency exchanges on the UPI platform-Finance
State Bank of India blocks payments to cryptocurrency exchanges on the UPI platform-Finance
The State Bank of India (SBI) reported reports on cryptocurrency exchanges via their Unified Payments Interface (UPI). Payment processors have been instructed to deactivate the bank of the bank for crypto retailers.
Payment processor instructed to disable SBI Upi for crypto companies
The State Bank of India, the largest bank in the country, has reportedly "blocked the preservation of funds by crypto exchanges on its UPI platform," reported the Economic Times on Wednesday, citing sources from the payment industry.
Unified Payments Interface (Upi) is an immediate real-time payment system developed by the National Payments Corporation of India (NPCI) to facilitate interbank transactions via mobile phones. The UPI payment system is regulated and monitored by the Indian central bank, the Reserve Bank of India (RBI). According to publication:
The bank has instructed payment caps to deactivate SBI Upi for crypto retailers.
This means that SBI bank customers cannot transfer funds via UPI to crypto exchanges to buy cryptocurrencies, including Bitcoin.
An SBI spokesman was quoted with the words: "It is the bank's policy not to comment on matters in connection with the topic."
Several banks in India were clamp at money transfers on crypto exchanges. However, the NPKI, however, in May that payments to crypto companies are not blocked. Instead, the banks advised the banks to decide for themselves whether they allow transactions with cryptocurrencies.
Well, since the SBI has made its decision, many other banks may hesitate to integrate crypto dealers on their respective UPI platforms, according to publication.
One of the largest Indian cryptocurrency exchanges, Wazirx, is already affected. CEO NISCHAL Shetty told the publication: "We are trying to discuss our points and present SBI. Wazirx follows Kyc standards (Know your Customer) and AML guidelines (anti-money laundering). As the largest crypto exchange in India, millions of in the step are currently affected by SBI."
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