India leaving crypto ban decision at the feet of individual banks

Indian regulators have decided to leave the decision to ban cryptocurrencies with individual banks.

The National Payments Corporation of India (NPCI) has decided that banks should be the ones to make the choice to either ban or support cryptocurrency transactions. NPCI is an umbrella organization in charge of India’s retail payments and settlements systems.

For clarity, Indian investors utilize Unified Payment Interface (UPI) and RuPay cards to perform cryptocurrency transactions. Banks will be forced to stop Indian investors from buying or selling their digital assets if the NPCI decides to block these channels. The public announcement is necessary since some banks have already started restricting transactions linked with cryptocurrency exchanges.

Despite the public revelation from the NPCI, India’s stance on cryptocurrency is still uncertain. Back in February, it was reportedthat the country had placed a ban on cryptocurrencies, giving investors six months to liquidate their assets. In March, officials made move to pass a draconian bill that would criminalize the possession of Bitcoin and other cryptocurrencies.

The recent move appears to be a sudden U-turn that can change at any time. Commenting on this apparent confusion, Nischal Shetty, an Indian software developer and CEO of WazirX crypto exchange tweeted:

Confusion in India’s banking system is hurting 1.5 CRORE Indians in Crypto... The Honourable Supreme Court of India has set aside RBI crypto circular of 2018. Banks in India still cite that circular to deny banking.