Cryptocurrency Exchanges Operating in India Suspends UPI Payments

Most major crypto exchanges, including CoinSwitch Kuber, WazirX, and CoinDCX, have stopped accepting rupee deposits using the Unified Payments Interface, an instant real-time payment method (UPI).

The decision was made after the National Payments Corporation of India (NPCI) released a statement last week stating that it was unaware of any crypto exchange operating in India that permits crypto purchases over UPI. As a result of the regulatory ambiguity, crypto exchanges have stopped receiving money from investors using UPI.

In order to buy bitcoin from crypto exchanges, Indian crypto investors decided to use the most accessible UPI payment mode. The crypto investors who used the UPI payment system were severely harmed by the shutdown.

Furthermore, for rupee deposits, the largest crypto exchanges in India have restricted banking choices. WazirX crypto has stated that UPI is not operational, and that there is no expected time for the issue with UPI deposits to be resolved. The exchange now accepts rupee deposits through net banking and person-to-person (P2P) transfers. Furthermore, CoinSwitch has ceased accepting rupee deposits, including UPI and bank transfers like NEFT, RTGS, and IMPS. CoinDCX has also joined the list, removing the ability to use UPI and IMPS to top up the in-app wallet.

On the other hand, rupee withdrawals were fine on exchanges.

In recent years, India has had a tumultuous relationship with cryptocurrencies. The RBI effectively outlawed crypto transactions in 2018 and instructed banks not to facilitate them, but the ruling was overturned by the Supreme Court in March 2020.

Despite the pandemic, though, cryptocurrencies have performed exceptionally well in recent months. Indians are flocking to cryptocurrencies in unprecedented numbers. According to sources, UPI’s total transaction value surpassed $1 trillion in the previous financial year.