Cryptocurrency Exchanges are already working hard on ensuring their business stays afloat in India despite the RBI Prohibition on Banks. But, the negative effects of RBI’s decision has begun to show.
Expensive Instant Withdrawals
Between day before yesterday and today, two exchanges namely Coindelta and WazirX increased their Instant withdrawal fees from 0-30 INR to a whopping 1.18%. It means the withdrawal fee is 1% while the GST on it is 18%.
|| INR Instant Withdrawal Update ||
Our Instant withdrawal service provider has unexpectedly raised the withdrawal fees and hence we’ll need to change our instant withdrawal fees.
It’s going to be 1.18% of the withdrawal amount.
Standard withdrawal will still be free.
— WazirX (@WazirXIndia) April 9, 2018
We’ve been informed by reliable sources that this instant withdrawal feature is supplied by a third party company and it is a unique product. Although not confirmed but it is safe to assume that WazirX, Coindelta and Koinex maybe using the same product as 2 of these exchanges are charging the same fees, while the third has completely shut down Instant withdrawals. No points for guessing here, Koinex possibly stopped it due to the huge volumes.
The Normal withdrawals on these exchanges that take anywhere between 1-4 days are working normally.
Payment Gateway based Deposits Impacted
Once again the worst affected exchange is Koinex. Just yesterday Koinex removed the option for Deposits using Payment gateway to its exchange. It should be noted that Koinex was using two payment gateways namely PayU and FonePaisa. Both these PG deposit options have been removed.
Coindelta and Zebpay seem to remain unfazed. The Payment Gateway based deposits are live and running well. However, the limitation of support of banks like Axis Bank, ICICI Bank, HDFC Bank, Kotak Mahindra still remain.
Whats surprising is that Coinome, an exchange created by a Payment Gateway – BillDesk, has shut down payment gateway based deposits as well. Sources close to the exchange say this is temporary, but can’t confirm how long will this bulwark last.
This may have gone unnoticed by Zebpay’s payment gateway is no longer PayU, its something called Advantgarde. They charge 1.5% fee + 18% GST.
UPI Based Deposit Running Without Issue
All exchanges are still banking on UPI, pun intended. UPI as we wrote, is currently the fastest and cheapest route of depositing INR. While Bitbns, Koinex, WazirX etc ask you to enter your mobile number in reference number field, Coindelta gives you a unique code to enter. Coinome on the other hand asks you to enter the UPI reference number on their website. Either way, this is how they are able to quickly identify your deposits and credit them. It remains one of the fastest modes of deposits.
Well, lets hope the banks honour the three months before they pull the plug. It does not look good for the community and we sincerely hope RBI reverses their decision.
Do you really need Payment Gateway? What do you think? Tell us in the comments below.