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State Bank Of India Blocks Payments To Cryptocurrency Exchanges On UPI Platform – Finance Bitcoin News

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

Payment Processors Instructed To Disable SBI UPI For Crypto Firms

The country’s largest bank State Bank of India has reportedly “blocked the receipt of funds by crypto exchanges on its UPI platform,” Economic Times reported on 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 asked payment processors to deactivate SBI UPI for crypto merchants.

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

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

Many banks in India are prohibiting fund transfers in crypto exchanges. However, NPCI said in May that it would not block payments to crypto companies using UPI. Instead, it advised banks to make their own decisions to allow transactions involving cryptocurrencies based on their own risk assessment.

Now that SBI has taken its decision, many other banks may be reluctant to include crypto traders on their respective UPI platforms, the publication reported.

One of the largest Indian cryptocurrency exchanges, Wazirx, has already been affected. CEO Nischal Shetty told the publication: “We are trying to discuss and put forward our point of view with 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 by this move by SBI.”

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

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