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The State Bank of India (SBI) has blocked payments to cryptocurrency exchanges using its Unified Payments Interface (UPI).
Consequently, SBI bank customers cannot transfer funds via UPI to crypto exchanges to buy cryptocurrencies, including bitcoin.
Several banks in India have been clamping down on fund transfers to crypto exchanges.
However, the National Payments Corporation of India (NPCI) said it would not block payments to crypto companies using UPI.
Instead, it advised banks to make their own decisions whether to allow transactions involving cryptocurrencies based on their risk assessment.
SBI's decision could make many other banks reluctant to onboard crypto merchants on their respective UPI platforms.
Nischal Shetty, CEO of Wazirx, one of the largest Indian cryptocurrency exchanges, said they’re trying to discuss and put forward their points to SBI as millions of Indians are currently affected.
