Mumbai2 hours ago
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- Payment gateways have been in trouble ever since the big banks withdrew.
- The restrictions imposed by the Reserve Bank have created a lot of difficulties.
A new case has emerged regarding cryptocurrencies. Many complaints have started being received against it. This is because the Reserve Bank had told them that it is not in favor of such currency.
Looking for a solution
In fact, many cryptocurrency exchanges are looking for solutions for easy transactions with banks and payment gateways. These exchanges have started facing problems ever since the Reserve Bank of India has said that it is not in favor of such digital currency. The bank had said so in view of the financial stability of the digital currency. It had also asked the banks to explain their stand in this regard.
Customer complaints on all major exchanges
According to social media and customers, all the major exchanges in India are flooded with customer complaints. Because major payment gateway companies have retreated. Due to this the transaction or transaction has been badly affected. Avinash Shekhar, co-chief executive of Zebpay, one of India’s oldest crypto exchanges, said that banks are reluctant to do business. There are many payment partners to say, but their progress is very slow.
Tatkal settlement offer closed
Zebpay is no longer offering Tatkal Settlement. The heads of five crypto exchanges said options are being explored to tie up with smaller payment gateways, build their own payment processors, hold instant settlements or simply transact between themselves. At least two exchanges have tied up with smaller payment processing firm Airpay after its larger payment firms severed ties.
There are 1.5 crore investors in India
There are about 15 million crypto investors in India. According to them, the estimated investment is more than 100 billion rupees. Some crypto exchanges like WazirX have decided to restrict only in peer-to-peer transactions for a few days. Other crypto companies such as Wald allow bank transfers with manual settlement. Because they are looking for payment processors who back up the settlement.
Payment gateway disconnected
Even major payment gateways like RazorPay, PayU and BillDesk have severed ties. Because they too are dependent on the banks to process the transactions. The big banks have been in a lot of trouble ever since they withdrew. Some others, such as CoinSwitch and WazirX, have tied up with Mumbai-based payment processor Airpay for instant transfers.
The payment gateway is backed by venture capital fund Kalaari Capital and investor Rakesh Jhunjhunwala, who has been vocal against cryptocurrencies. Smaller payment gateways have not proved to be very successful in processing large volumes of transactions. This has led to a flood of customer complaints.
Small firms are also moving away
The lack of support from banks means that smaller firms, like their larger counterparts, are pulling away from crypto activities. The founder of an Indian crypto exchange, speaking on condition of anonymity, said that the partnership with the smaller payment processor is not stable yet. Gaurav Dahiya, chief executive of domestic exchange Bitbins, said that this is just a stop-gap arrangement and not a solution to the problem the industry is facing.
This restriction imposed by the Reserve Bank has created a lot of difficulties and left the customers only for their mutual (peer-to-peer or P2P) transactions which allow buyers and sellers to engage directly.