Delhi High Court issues notice to authorities over ban on UPI payments for crypto trades

Delhi High Court on Thursday issued tices to Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), State Bank of India (SBI) and ors regarding a petition seeking direction to respondents to initiate necessary measures and take back decision of prohibiting UPI Payments in cryptocurrency exchanges. As per petition, SBI’s action to block UPI Services for WazirX users was a direct violation of Supreme Court Judgment of Internet and Mobile Association vs Reserve Bank Of India on March 4, 2020, RBI circular dated May 31, 2021, and or tifications by NPCI, which clearly stated that NPCI would t ban cryptocurrency transactions.

bench of Justice DN Patel and Justice Jyoti Singh has demanded a response from all mentioned authorities and has posted matter for December 24, 2021. plea also seeks new guidelines from RBI to regulate and govern cryptocurrency as its popularity is increasing among Indians constantly. petitioner Arnav Gulati who is a law student stated, " SBI has blocked and restricted users and merchants to use UPI deposits option on crypto exchanges reby leaving users with option but to use or payment deposit options which takes more time to get completed and extra charges like convenience fees, GST charges or service charges are charged, which makes it difficult for retail investors and users to get funds on time."

RBI and Supreme Court’s differing stand on cryptocurrencies  

Gulati furr said in plea that in April 2018, RBI banned all banks from dealing with any cryptocurrency or providing services for facilitating tre of cryptocurrencies including Bitcoins. services include maintaining accounts, registering, tring, settling, clearing, giving loans against virtual tokens, accepting m as collateral, opening accounts of exchanges dealing with m and transfer/receipt of money in accounts relating to purchase/ sale of virtual currencies. He also ded, "And in March 2020, Supreme Court in case of Internet and Mobile Association of India vs Reserve Bank of India passed final order stating that RBI must allow banking entities to allow utilisation of ir funds in dealing with Virtual Currencies and struck down impugned circular. And in May 2021, National Payments Corporation of India (NCPI) clarifies that it shall t ban UPI transfer system for dealing with Cryptocurrency exchanges.”

(With ANI inputs)

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