Banks and Payment Gateways in India is Restricting Uses of Cryptocurrencies

Cryptocurrency exchanges in India struggle to complete financial transactions as the local banks are not cooperating with them. Mumbai, known as India’s financial capital, accused several payment gateways and banks that they are blocking the financial transactions made using cryptocurrencies. The banks are following a years old Reserve Bank of India (RBI) policy. 

According to the media, the banks claim that the Supreme Court of India has banned the use of cryptocurrencies. The head of cryptocurrency exchange, Wazrix, Mr. Nischal Shetty, recently expressed his frustration on Twitter. On Tuesday, he tweeted, “Confusion in India’s banking industry is hurting 1.5 Crore [15 million] Indians in cryptocurrency. 

India’s honorable supreme court has kept the crypto circular of 2018 aside. Banks in India still cite that circular to deny banking. Request @RBI, please clarify and help”.

After tweeting this, he also posted another tweet, in which he mentioned, “I request banks of India to update their compliance teams about the Supreme Court ruling that set aside the RBI circular against crypto.” He also added that it is unfair that the Supreme Court of India gave cryptocurrency a green signal, but the banks are still denying the customers from using cryptocurrencies.” 

To date, no official explanation is given from the sides of the banks. But recently, one of the senior executives of a payment gateway talked to Economic Times and stated a reason behind this move. According to him, the banks are probably doing it because they are trying to protect their customers from fraud related to cryptocurrency. 

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