WazirX, BuyUCoin, CoinDCX, and other cryptocurrency exchanges in India have disabled INR deposits starting today since their partner banks have cut off again. Concerned exchanges have to start emailing users about this update, and asked users to try their P2P system for buying and selling cryptocurrencies. INR withdrawals haven’t been affected by this move.
Indian Crypto Exchanges Struggle With Partner Banks
The RBI banking ban in 2018 has affected Indian cryptocurrency exchanges significantly, with most of them shifting to peer-to-peer models for transactions and some shutting down their operations altogether. This situation was overturned in 2020 after the local crypto exchanges fought together against the order.
Now, it seems the hard situation is back, as most Indian cryptocurrency exchanges have disabled INR deposits after their partner banks suspend services. The local crypto exchanges disabled INR deposit options with IMPS, RTGS, NEFT, and UPI, and asked users to try their inbuilt peer-to-peer system. Further, they have been informing their users about this issue.
In the case of WazirX, one of the India’s top cryptocurrency exchange, their partner bank PayTM payments bank has suspended support yesterday for unknown reasons. Thus, they sent a notice to all its users as;
“WazirX will not accept INR deposits to PayTM Bank account effective from 11:59 PM IST tonight, May 20, 2021.
If you make any INR deposit via IMPS/NEFT/RTGS to our PayTM Bank account after 11:59 PM IST, 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.”
Further, they assured that INR withdrawals are unaffected, and continues as usual. Suspending banking support and pushing users to P2P can cripple the growth of rapidly rising interest of users. Most netizens registering into growing crypto exchanges are new and aren’t aware of such transaction systems.
Thus, cryptocurrency exchanges are trying hard to resolve any issues and reinstate the flexible deposit options. The Indian government on the other hand is numb and taking so long on crafting laws to regulate cryptocurrencies.