Bitcoin Forum

I just came across this news on a reputable website. I am not sure whether any of you here are facing this problem. This happened because other big private banks have already implemented a ban. UPI does not fall under RBI's jurisdiction therefore you won't here anything from them. Here is a snippet from the article.


You can read the full article - https://yourstory.com/2021/09/state-bank-of-india-bans-traders-upi-cryptocurrency-trading/amp

What do you think will happen now? Are we again going back to 2018 when the RBI ban was implemented?

To correct the link it's this one https://yourstory.com/2021/09/state-bank-of-india-bans-traders-upi-cryptocurrency-trading/amp

While their finance minister said they're not clamping hard crypto, they are still avoiding cryptocurrency while some countries are adopting crypto as an alternative for their currency. That 350 Indian startups will be in a difficult situation. US is trying to regulate as if they can which SEC Gensler are more likely to deceive everyone.

I doubt we're going back to 2018. There is too much exposure to BTC while other markets are crashing, they'll resort to crypto.

Doesn't come as a surprise since SBI is anyhow filled with dimwits who do not understand the crypto markets (and banking too :P). Only if they had researched a bit more and understood things, would we have received better services from SBI.

Notably, suo moto banning users from undertaking a certain activity that is not illegal could be challenged by the users for infringing on their banking rights. SBI can't decide how its users need to spend their money. At the most, SBI can issue a warning similar to mutual funds where it can say that investment in crypto is subject to market risk.

This is very weird, while on one side we are talking about right to banking as a fundamental right and talking about maximum financial inclusion, at the same time one bank abusing its power and authority is stopping a specific set of people to deal with it. First of all, I am surprised how is this not a violation of the Supreme Court order of RBI ban, more surprising thing is that even RBI issued a notice to the banks to obey the SC order, and still banks are playing these cheap tricks. I think P2P buying and selling is soon going to become the new normal in the Indian crypto space, moreover, this sort of shadowban directly means that the government isn't going to accept crypto at any means, I hope some association files a PIL against SBI's notice. 

UPI payments do not fall under RBI jurisdiction. You still can buy cryptocurrency using IMPS services but not with UPI. RBI cannot do anything here as they do not control UPI and there is no violation of Supreme Court order as you are not being stopped to purchase cryptocurrency you are only being stopped to use one mode of payment system.

Ohhh sorry didn't notice that only UPI payments have been disallowed. However even UPI comes under the regulation of RBI as it's part of our money system, but just one bank stopping just one service for some specific set of customers on arbitrary basis, I still think it's not justified until the thing you are doing isn't illegal, it's a public sector bank after all. But yes the old Supreme court verdict might not be directly applicable on this case if this is the thing.

It seems NPCI is behind upi things and they have said it's up to banks whether to accept crypto payments or not.

https://in.investing.com/news/npci-says-wont-ban-crypto-trades-in-india-2716703

I still don't understand why banks have banned UPI for payment to cryptocurrency exchanges. When you are allowing IMPS then you should allow UPI too. There is no sense behind this ban. Banks have been always against cryptocurrency and if NPCI has left it to the banks then this will be a permanent ban. Someone should file a right to information act petition to find out the reason behind it as government banks are now involved it would be easy to find the reason behind this ban.

Ask naimish from coincrunch  :P