Crypto investors in India have good news as the National Payments Corporation of India (NPCI) has given the final decision and refused to block crypto trades in India. The umbrella body for digital retail payments in the country has left the decision of banning crypto trade on the bank’s risk and compliance team.
NPCI’s decision has come at the time when some of the banks in India decided to opt out of cryptocurrency trading platforms, worrying that the government could announce a complete ban on buying or selling digital coins. It’s vital to notice that banks have started taking down on some cryptocurrency exchanges and investments in India.
According to a report by Economic Times, NPCI has refused to demand a central decision to disable the use of UPI and RuPay cards as payment modes for crypto investments. The move, if taken, would be applied uniformly to all banks, leaving investors with very few investment options like MasterCard, Visa, PayPal, etc.
As several banks are permitting crypto trade, it is still not clear how long will trading platforms get the support of formalised banking establishments of India. Recently, in inter-ministerial discussions, lawmakers reportedly mentioned granting investors an exit window of 3-6 months before completely banning the trading, mining and issuing of cryptocurrencies in the country with the upcoming Digital Currency Bill, 2021.
The planned legislation that is yet to be presented in the Parliament may only legalise the cryptocurrency right now mooted by the Reserve Bank of India (RBI) whereas banning the rest. According to the reports the Indians own digital currency worth over $1.5 billion or Rs 10,000 crore.