Indians are not finding it easy in recent weeks to engage in crypto exchange since the banks are restricting payment for consumers who sell or buy bitcoin.
There is not any official announcement from the government as regards the crypto ban or something related. However, the banks’ reactions towards crypto-related customers have been harsh. The current issues are a result of actions taken by top stakeholders in the finance sector.
In a recent Reuter report, both the reserve bank and the country’s central bank want the banks to stop crypto transactions. Most banks in the country want the National Payment Corporation of India (NPCI) to stop transactions of users that buy bitcoin or sell bitcoin.
NPCI didn’t adopt their opinion and told banks to make internal decisions. Since then, some bank users have not been able to use their accounts amongst other issues. The youth and younger adults are the ones facing most of the issues because they make up the larger population of bitcoin users.
Who/what is the NPCI
NPCI is an abbreviation for the National Payments Corporation of India. This body is in charge of retaining payment in the country. The NPCI has rejected the move to block crypto-related funds transfers. They put it to the bank’s compliance team to decide if they want their users to use the account for crypto trade or investment.
If the decision comes from the NPCI, investment or crypto trade will not be possible because it will affect all banks. Many banks are still allowing trades, and there is uncertainty on how long these banks will allow crypto-related transactions before they stop it.
Red notice alert
The issues that most banks have been facing in India are not only related to cryptocurrency. Naimish Shanghvi, the founder of India’s crypto news website Coincrunch in his statement with Coindesk, told them that he got a letter regarding his account saying his account is inconsistent and would be disabled in a month. “That the accounts is not performing the regular activity that it is expected to perform based on the details given during the registration process.
A report released by Coinrush last summer showed that Axis bank educated its users to signal a compulsory arrangement that the account user won’t sell or buy bitcoin in India and other altcoins. It’s disheartening because nearly all users that get the warning of their bank accounts are clients who’ve interacted with Wazirx’s accounts at Karur Vysya bank.
In another report, a user also shared the story of his sibling who obtained a letter from HDFC. The content of this letter is to confirm whether the user used the account to purchase biotin and participate in additional crypto transactions. The user’s nickname is”Crypto Hustler” and the person didn’t share his private information to avoid confronting authorities punishment.
Struggle exchangers are confronting
Nischal Shetty’s opinion
Nischal Shetty, the co-founder of WazirX, stated that the banking dilemma is what crypto exchangers utilizing WazirX are facing, and they are finding it uneasy about transferring on their bank for up to two weeks. Banks are providing customers with banking APIs problem to deposit. He added that the lender his trade system is functioning with ceased operations together, and they had to source for a different bank to make the trade flow simple. Recently and over the weekend, banking service was stopped. There is no precise regulation guiding