India’s government-based organization on digital payments and retail payments settlement systems operator is the National Payments Corporation of India (NPCI). The NPCI operates under the Reserve Bank of India. Economic Times reported the NPCI decides to withhold the decision on either ban or allow customers to make and receive payments through cryptocurrency trading to commercial banks.
The Banker’s requests
The outgrowth of the cryptocurrency industry in recent times plays a vital role in the economy of a country, whether the country accepts it or bans it.Most of the World’s top MNC’s have indulged themselves either directly or indirectly in the crypto industry. Most of such corporations drive the economy of a country, and so crypto now serves as a vital path a country should either take in or try to adopt inorder for future economic progress.
India is one such country, and most of the commercial banks of India have realized the true potential of crypto trading and its reap benefits.The customers are also now consistently persuading the banks to allow them to carry out the cryptocurrency trades.
Seeking a fine future economic growth and customers oriented business profits, most commercial banks have now requested the NPCI to allow them to indulge in payments towards the crypto trade.
On the contrary,a sector of bankers requested the NPCI to block all crypto related transactions. This could be viewed as the fear for the bankers that the money stored with them , could now get stored into numerous other crypto wallets.
NPCI’s Response
The NPCI is now quite puzzled by such a radical disclamation between two distinct ends. For those in favor of crypto, NPCI decided to hold the decision on the ban of cryptocurrency trade through the commercial banks. For those bankers against the cryptocurrency trade, NPCI asks them to first consult their legal and compliance divisions in order to block crypto-related transactions on their own systems.
All these issues tend to add on as the latest segment on the long lasting fight for cryptocurrency legalisation in India.
Along with this, crypto trading in India is still on the surge as a few banks allow their customers to trade with facilities such as UPI. The volume of digital assets trading has surged up tremendously over the last year in India.
Market experts still put forward that India must legalize Bitcoin along with all other cryptocurrencies and to regulate them as the same with the stock market.
The popular author, editor and columnist Ratan Sharda commented last year,
“Just like you cannot ban porn, you cannot ban cryptocurrency”
IndiaTech.org, an association reviewing Indian startups and technology published an article report stating, India should view cryptocurrencies as digital assets and not as actual currencies.
An industry enthusiast reported to Economic Times that if NPCI took the decision to block all online payment options for trading cryptocurrency, it would have applied the block uniformly to all banks and thus reducing the payments options for crypto trading overall in India.
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