- India regulators have decided to leave crypto ban decisions to individual Banks.
- Banks have to decide whether they will ban or support crypto transactions according to NPCI.
Indian regulators have decided to leave the crypto ban decision up to individual banks. Of note, the National Payment Corporation of India (NPCI) believes that banks should choose to either support or ban crypto transactions themselves.
Based on a report, Indian investors mostly use a Unified Payment Interface (UPI) card for crypto payment activities. Not the UPI card usage alone, a lot more investors also perform their day-to-day digital asset transactions using RuPay.
According to the report, if the NPCI tries to stop UPI and RuPay use cases, this will make the individual banks also prohibit investors from crypto trading. Also, due to the news, a lot of banks have started restricting anyone who connects their accounts to crypto exchanges.
Talking about the NPCI’s current position on the possible Indian crypto ban, WazirX crypto exchange CEO Nischal Shetty said,
Confusion in India’s banking system is hurting 1.5 CRORE Indians in Crypto… The Honourable Supreme Court of India has set aside the RBI crypto circular of 2018. Banks in India still cite that circular to deny banking.
Moreover, despite how the NPCI opinion appears, specifically for the Banks this time, the India crypto ban outcome still looks uncertain.
Prior to this, Indian’s Finance Minister helpfully stated that the Indian government will not completely ban crypto.