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Delhi High Court Issues Notice To SBI Over Barring Traders From Using Its UPI Platform To Trade In Cryptocurrency

Akshita Saxena
28 Oct 2021 2:15 PM GMT
Delhi High Court Issues Notice To SBI Over Barring Traders From Using Its UPI Platform To Trade In Cryptocurrency
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The Delhi High Court today issued notice on a petition challenging SBI's decision prohibiting the use of UPI platform for trading in cryptocurrencies. The plea also seeks a direction to the RBI to regulate and govern the cryptocurrency sector, thereby making provisions for payment interfaces. The Division Bench of Chief Justice DN Patel and Justice Jyoti Singh has kept the matter...

The Delhi High Court today issued notice on a petition challenging SBI's decision prohibiting the use of UPI platform for trading in cryptocurrencies.

The plea also seeks a direction to the RBI to regulate and govern the cryptocurrency sector, thereby making provisions for payment interfaces.

The Division Bench of Chief Justice DN Patel and Justice Jyoti Singh has kept the matter for hearing on December 24.

State Bank of India, Reserve Bank of India, National Payments Corporation of India and Department of Financial Services are Respondents in the matter.

The petition has been filed by Arnav Gulati, a Law student who is also a retail investor in cryptocurrency. He is represented by Advocates Siddharth Acharya and Simarjeet Singh Satia.

He has stated that the SBI's action prohibiting the use of UPI platform for dealing and settling of funds in WazirX Crypto-exchange infringes his Fundamental Right of trade under Article 19(1)(g) and the right to equality under Article 14 of the Constitution of India.

As per the petition, WazirX Crypto-exchange is one of the largest crypto-exchange in India, having a user base of more than 70 lakh users.

The Petitioner has stated that through its prohibition, the Bank is forcing its customers to use other payment deposit options which takes more time to get completed and extra charges like convenience fees, GST charges or service charges are charged, which makes it difficult for the retail investors and users to get the funds on time.

He has relied on the Supreme Court's judgment in Internet & Mobile Association Of India v. RBI, "paving the way for banks and their customers to deal in cryptocurrency."

Through the said decision, the Top Court had lifted the curbs imposed by the Reserve Bank of India on regulated entities such as banks and NBFCs from dealing with virtual currencies and from providing services to crypto businesses.

During the course of hearing, the Bench lauded the plea as being "very-well drafted" and posted the matter for hearing on December 24.

Case Title: Arnav Gulati v. SBI & Ors.

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