The Reserve Bank of India has rejected the payment aggregator license of MobiKwik due to its association with the crypto platform.
The bank’s red light means MobiKwik will be unable to add new customers who use the company’s Zacpay as a payment gateway, and existing customers will have 180 days to stop using it.
Firm stopped services without explanation
The firm abruptly halted its services for all crypto businesses in early April and declined to explain the reason to the crypto platform.
business today The company cited the draft red herring prospectus, which stated: “While our consumer payments and BNPL segments are heavily dependent on Zakpay’s services for payment processing within the MobiKwik ecosystem… The disruption, even if caused entirely by external factors. For us, could adversely affect the operation of our MobiKwik Wallet and BNPL products, including MobiKwik Zip, as well as our brand and reputation.”
RBI Governor Shaktikanta Das earlier told reporters, “Our position on cryptocurrencies is very clear… Private cryptos are a major threat to macroeconomic and financial stability.”
India working on CBDC
Instead, the finance ministry and central banks are working on a central bank digital currency (CBDC), which is the digital equivalent of the rupee.
In a recent interview, co-founder Sandeep Nelwal said: “The Ministry of Finance should lead this task force, and every other institution should be given a clear mandate that no crypto case will be handled locally. Should only be controlled by the Central Crypto Task Force.”
Polygon is a major crypto project that originated in India. However, due to uncertainty about crypto law in the country, Nelwal and his team moved to Dubai two years ago.
“But it is very difficult to expect every nodal member of every regulatory body to truly understand this new technology in their busy schedules. That’s why we need a single highly empowered division, which has the sole responsibility of interacting, learning and enforcing regulations on this specific industry,” Nailwal said.