RBI Rejects MobiKwik’s Payment Aggregator Licence; Support to Crypto Exchanges Likely Reason

Key Takeaways

  • RBI won’t allow Mobikwik to use Zaakpay.
  • Crypto exchanges are not using UPI services on their platform. 

On Friday, Business Today reported that the Fintech major MobiKwik applied for an application to use Zaakpay as an aggregator. However, its request has been rejected by the Reserve Bank of India. Even the firm won’t be able to work with merchants who will offer to pay via Zaakpay. As for the existing partnerships, they will get 180 days to stop using the payment gateway.

The main concern of the regulator is that MobiKwik may support cryptocurrency exchanges using Zaakpay. Debates about digital assets are ongoing in the country. There are crypto exchanges that are not using Unified Payments Interface (UPI) services, and many are disabling the use of the same on their platforms.

This makes it difficult for the regulators to keep a check on the transactions and the use of funds. Even the National Payments Corporation (NPCI) recently stated that they were “not aware of any crypto exchange using UPI”. 

The Fintech firm and the regulator are yet to make an announcement or a public comment on the same. 

Banks have always stood like a wall in front of crypto traders forever. Even after the Supreme Court of India un-banned, crypto-assets banks were posing a problem for investors in transacting with crypto exchanges. There were also cases where some banks like HDFC banned user accounts for transacting with crypto exchanges.

Moreover, as of now, after imposing a 30% tax on crypto gains the government has started pushing banks to not transact with crypto exchanges anymore.

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Shreya Bhattacharya

A journalist & writer exploring new topics every day!

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