Indian Crypto Exchanges Disable UPI, Other Payment Options

Many Indian cryptocurrency exchanges are removing rupee deposits and limiting payments via the Unified Payments Interface. This was in response to a statement by the National Payments Corporation of India, (NPCI), regarding the use of the UPI system for crypto exchanges.

Indian Exchanges No Longer Offer Major Payment Options

There are less options to deposit Indian rupees on cryptocurrency exchanges. A growing number cryptocurrency exchanges have made it impossible to deposit Indian rupees using the Unified Payments Interface system (UPI), which is the most popular retail payment method.

Wazirx, a crypto exchange, does not offer UPI support. The exchange tweeted Wednesday that UPI support was not available. Coindcx also stated Monday that UPI support is temporarily unavailable.

Coinswitch Kuber went further, and reportedly suspended all INR deposit service Wednesday, including UPI, bank transfers via NEFT and RTGS and IMPS. Coinswitch, a leading cryptocurrency trading platform in India, has more than 15 million users.

Coinbase, a crypto exchange listed on the Nasdaq, has stopped crypto purchases due to “an ongoing issue with the UPI System.”

After the National Payments Corporation of India issued a statement saying that it was not aware of any crypto-exchanges using the UPI system, cryptocurrency exchanges have stopped accepting UPI payments. Following Coinbase’s launch in India, the NPCI issued a statement stating that UPI could be used to deposit funds and allow users to purchase cryptocurrencies using UPI.

Forkast publication was told by a person familiar with the matter that Coinbase’s claim to have UPI support meant that the NPCI was in a difficult spot. The person stated that Coinbase was launched in India, and the company announced UPI support. “Then the NPCI realized it had to clarify.”

Popular payment service Mobikwik stopped offering services to crypto exchanges earlier this month.

The Indian tax of 30% on crypto income was implemented without any loss offsets or deductions. Crypto trading volumes have fallen in India. A 1% tax deducted from the source (TDS) will be imposed on crypto transactions starting July 1.