Even though the RBI has said that crypto is not banned in India, SBI stops payments to exchanges using its UPI option. A few months back, many banks were warning users who were sending money to crypto exchanges. This was when the RBI cleared it up that they cannot use the 2018 ban circular to do so. This is because the Supreme court has already lifted the ban. Therefore, it is a little weird to see that SBI has been putting a stop to the use of UPI for sending money to crypto exchnages.
SBI’s step against crypto
UPI is one of the most used ways to make payments in India, and this is the reason that the ban will hurt crypto exchanges. As SBI bans the use of UPI, most of us will have to depend on IMPS or NEFT payments to send money to crypto exchanges. While that is possible, it has a lot more steps to it as compared to UPI. In fact, a few days back, I added some funds to my exchange using UPI, it was seamless, but whenever I use some other option, it seems tedious to me.
I do think this doesn’t mean you cannot transfer funds to crypto exchanges using an SBI account. All you need to do is use the IMPS options from the YONO app to make the payment. But while SBI stops payments to crypto exchanges using UPI, other banks still use the platform and allow payments. In fact, NPCI, the ones who made the UPI protocol, also said they are not banning crypto in India. But banks do have their own decision-making abilities, and the SBI has chosen to go the other route.
The problems due to this
Instead of talking about things you already know, I would like to put forward a very practical problem I am facing. I prefer WazirX over other crypto exchanges in India due to the variety of tokens and features. But, since I cannot add money on the platform free of cost, I am adding money on Coinswitch Kuber to buy crypto. This makes me sure that a lot of people are doing the same due to the exorbitant charges on WazirX for adding money. And all this is happening even after they are following the KYC and AML (Anti-money laundering) laws.
What are your thoughts on SBI stopping UPI payments to crypto exchanges? Do you think it will impact users, or they will fund some other way? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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