International cryptocurrency exchange COinbase and Indian mobile wallet firm Mobikwik halts UPI payments for digital currency transactions after the NPCI (National Payments Corporation of India) offers a statement stating that it was unaware of this occurrence as per reports.
Coinbase was launched in India last Thursday and it started to offer UPI payments for crypto transactions. The NCPI is not exactly a payment regulator, but is the Union of the major banks of India, both private and public, and holds a lot of say in how the Unified Payments Interface (UPI) is used in this country.
While there is nothing prominently prohibiting the use of UPI to purchase digital currencies, firms seem to avoid any form of confrontation over these problems with the regulators. Banks still remain hesitant to associate themselves with the crypto space also.
Presently only a few digital currency exchanges will enable crypto trading with the use of IMPS (Immediate Payment Service) bank transfers. Particularly, at least six digital currency exchanges in India were providing the option of Mobikwik e-wallet and now Mobikwik halts UPI payments of all these firms with immediate effect. With that let us have a look at the available choices for the users to deposit or withdraw their money from the crypto exchanges.
Withdrawal Or Deposition Of Funds After Mobikwik Halts UPI Payments
After Mobikwik halts UPI payments, on famous crypto exchanges like CoinDCX, WazirX, and Coinbase, depositing funds looks quite difficult with only one or two choices available. Presently, most of the Indian crypto exchanges enable users to deposit funds only via net banking, with only limited banks supporting transactions. HDFC Bank, Kotak Mahindra Bank, Axis Bank, and several other private banks are not supporting any type of crypto transactions. The minimum amount of sum to deposit through net banking begins from Rs 100 to Rs 4,99,000 (maximum).
In case of withdrawing funds, both NEFT and IMPS options look to be available as of now. Users can withdraw a minimum of Rs 1,000 and a maximum of Rs 5 lakh for each transaction using IMPS. NEFT enables a minimum of Rs 1,000 for each transaction and a maximum of Rs 50 lakhs for each transaction. The daily limit of withdrawing funds is Rs 1 crore. UPI or any other payment wallet is not available on any digital currency exchange.
Peer-To-Peer Withdrawal Of Funds After Mobikwik Halts UPI Payments
For a faster and more anonymous withdrawal, crypto exchanges are offering the choice of a peer-to-peer platform to sell BTC for cash. One can sign up on a peer-to-peer exchange and select the location of your perfect buyer. Then, one can utilize the marketplace to find purchasers. Most peer-to-peer exchanges have an escrow option where BTCs are not released to the purchaser until one confirms they have got their payment.
While using the peer-to-peer selling mechanism, it is important to be aware of fraudsters. Also, it is highly suggested to use a peer-to-peer channel that allows you to keep your Bitcoins locked until you authenticate that the payment has been received from the buyer. After Mobikwik halts UPI payments, this can be a good option.
Conclusion
Coinbase and Mobikwik halts UPI payments for its users, a few days after Coinbase released its plan to start crypto trading in India. This step was taken on the basis of a statement that the NPCI (National Payments Corporation of India) released recently. UPI payments for crypto transactions could have been an easy way for many users to enter the crypto space, but alas! Even that is now taken away from them.
