If you use the WazirX cryptocurrency exchange app in India to buy and sell Bitcoins and other cryptocurrencies, you should know that one payment option will not be available from now. Paytm Payments Bank will stop dealing with cryptocurrency exchanges and will no longer allow cryptocurrency transactions on its platform.
The decision comes as cryptocurrency prices are plummeting around the world, with Bitcoin leading the charge and smaller players like Ethereum not far behind.
Following an "informal" Reserve Bank of India (RBI) order, banks announced on May 20 that they would no longer deal with crypto exchanges such as WazirX, BuyUCoin, and Zebpay.
In an email to all WazirX users, the platform explained that their Paytm Bank account will be unavailable for the time being, which means that bank transfers using NEFT or IMPS transfers from your bank account will be unavailable.
This is the opening twist in the ongoing story of cryptocurrency trading in India and banking institutions' unwillingness to work with crypto exchanges. Because of this, WazirX, CoinSwitch Kuber, and CoinDCX are currently unable to provide UPI payments as a payment option to users.
📢 Important update— WazirX: Bitcoin & Cryptocurrency Exchange in India (@WazirXIndia) May 20, 2021
WazirX will not accept INR deposits to PayTM Bank account from 11:59 PM IST tonight, 20th May 2021.
If you make any INR deposit via IMPS/NEFT/RTGS to our PayTM Bank account after that, it will revert to your source bank account within 7-10 business days.
WazirX in a tweet mentioned "WazirX will not accept INR deposits to PayTM Bank account from 11:59 PM IST tonight, 20th May 2021. If you make any INR deposit via IMPS/NEFT/RTGS to our PayTM Bank account after that, it will revert to your source bank account within 7-10 business days".
While we work with our partners to add more INR deposit options, we recommend you to use WazirX P2P to buy/sell USDT with INR. Thank you for your support, added further.
WazirX P2P is the only alternative available, and it allows you to buy and sell USDT directly with other buyers and sellers. Following your selection of the amount of USDT you want to exchange, the app matches you with sellers or buyers who are looking to make a trade at that moment.
The Indian National Payments Corporation operating the UPI real-time payment system has however rejected a ban on crypto-monetary transactions in India. Rather, they requested banks to establish their own cryptocurrency policies.