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KEY TAKEAWAYS

  • The Delhi High Court has given notice on a petition contesting SBI's decision to restrict cryptocurrency traders from using the UPI network.
  • The matter has been adjourned to December 24 by a Division Bench consisting of Chief Justice DN Patel and Justice Jyoti Singh.
  • The petition also asks the RBI to direct the cryptocurrency sector to be regulated and governed, with payment interfaces included.

BACKGROUND

  • Respondents in the case are the State Bank of India, the Reserve Bank of India, the National Payments Corporation of India, and the Department of Financial Services.
  • Arnav Gulati, a law student who is also a cryptocurrency retail investor, has filed the petition. Advocates Siddharth Acharya and Simarjeet Singh Satia are representing him.
  • He claims that the SBI's decision restricting the use of the UPI platform for dealing and settling monies in WazirX Crypto-exchange violates his fundamental freedom to trade under Article 19(1)(g) of the Constitution of India, as well as his right to equality under Article 14 of the Constitution.
  • According to the petition, WazirX Crypto-exchange is one of India's major crypto-exchanges, with over 70 lakh customers.
  • The Petitioner claims that the Bank's restriction forces its clients to use other payment deposit options, which take longer to complete and incur additional expenses such as convenience fees, GST charges, or service charges, making it impossible for ordinary investors and users to receive cash on time.

OBSERVATION

  • On the basis of the above mentioned terms, it was requested that SBI reverse its judgement banning UPI payments on cryptocurrency exchanges.
  • A directive to the RBI to control and govern the cryptocurrency sector, as well as provide provisions for payment interfaces, was also asked for.
  • The Bench praised the plea as "very-well drafted" at the hearing and set the subject for hearing on December 24.

QUESTIONS

  • What is cryptocurrency and what is meant by crypto exchange?
  • Which crypto exchange is biggest in India?
  • Do you agree with the order issued by the Delhi High Court?

Let us know your views on the issue in the comment section below!

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