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After the NPCI denied UPI Payments, Indian banks demanded action

Naris - Cryptocurrency Speculator

  • To proceed with UPI, banks are seeking clarification from the National Payments Corporation of India (NPCI)
  • UPI servers disrupted user payments across all Indian banks
  • NPCI is hesitant to ratify laws or establish a prohibition in the near future

Indian banks petitioned the National Payments Corporation of India (NPCI) for clarity on cryptocurrency trading transactions utilizing the United Payment Interface (UPI).

This issue comes on the heels of the Coinbase fiasco, in which the NPCI claimed it had no knowledge of any cryptocurrency exchange platforms cooperating with them.

In light of recent media stories claiming that cryptocurrencies may be purchased via UPI, the National Payments Corporation of India would like to explain that it is not aware of any crypto exchanges that use UPI. Despite these hurdles, banks want to keep processing these transactions and are still waiting for aid from the national organization to find an alternate option.

The National Payments Corporation of India (NPCI), which oversees all national digital payment and settlement systems, has been sought by Indian banks. They want clear instructions on how to use the Unified Payment Interface (UPI) for cryptocurrency transactions.

Several banks have reported the matter with UPI, according to a report. NPCI's stockholders, including financial institutions such as the State Bank of India, Union Bank of India, HDFC Bank, HSBC Limited, and Citi, have filed concerns.

Banks are optimistic that these conversations with the organization would result in official advice on this subject. However, an NPCI spokesman stated that the NPCI is hesitant to issue any circulars in the near future.

According to an NPCI spokeswoman, if a formal circular is issued banning UPI for cryptos or VDAs, the crypto market industry would challenge it legally, as they did with the Reserve Bank of India's prohibition in April 2018.

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