The Delhi HC has issued notices to the Reserve Bank of India, the National Payments Corporation of India and the SBI regarding the ban on UPI payments for cryptocurrency exchanges.
On Thursday, the Delhi High Court issued notices to the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), the State Bank of India (SBI) and others regarding a petition seeking advice from respondents to initiate the necessary measures and resume the decision to ban UPI payments in cryptocurrency exchanges. According to the petition, SBI’s action to block UPI services for WazirX users was a direct violation of the ruling of the Supreme Court of the Internet and Mobile Association against the Reserve Bank of India on March 4, 2020, the RBI circular of May 31, 2021. and other notifications from NPCI, which made it clear that NPCI would not ban cryptocurrency transactions.
The bench of Judge DN Patel and Judge Jyoti Singh demanded a response from all cited authorities and published the case for December 24, 2021. The appeal also calls for new guidance from the RBI to regulate and govern cryptocurrency since its popularity is constantly increasing among Indians. . Law student Arnav Gulati, petitioner, said: The SBI has blocked and prohibited users and traders from using the UPI deposit option on cryptocurrency exchanges, leaving users with no other choice than using the other deposit payment options that take longer to complete and additional fees are charged such as a convenience fee, GST fee or service fee, making it difficult for investors retailers and users to get their funds on time.
RBI and Supreme Court’s differing stand on cryptocurrencies
Gulati further said in the request that in April 2018, the RBI had banned all banks from dealing with cryptocurrency or providing services to facilitate trading in cryptocurrency, including Bitcoin. Services include account maintenance, registration, trading, settlement, clearing, granting virtual token loans, accepting them as collateral, opening trading accounts that process them and transferring / receiving money in accounts linked to the purchase / sale of virtual currencies. He further added: And in March 2020, the Supreme Court in the Internet and Mobile Association of India v Reserve Bank of India case approved the final order stating that the RBI must allow banking entities to authorize the use of their funds and dealing with virtual currencies and rescinded the disputed circular. And in May 2021, the National Payments Corporation of India (NCPI) made it clear that it would not ban the UPI transfer system to manage cryptocurrency exchanges.
