Not aware of any crypto exchange using UPI, says National Payments Corporation

The National Payments Corporation of India (NPCI) on Thursday clarified that the organization is not aware of any virtual digital asset exchange using the Unified Payments Interface (UPI) for transactions.

"With reference to some recent media reports around the purchase of cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI," reads the NPCI statement.

The NPCI statement comes in the backdrop of media reports of purchasing options of cryptocurrencies via UPI. NPCI is an umbrella organization for operating retail payments and settlement systems in India.

Meanwhile, the Income Tax Department will keep a close eye on every transaction on crypto exchanges as the 30 per cent 'crypto tax' proposed in the Union Budget comes into effect from April 1, 2022, said an official.

Income tax officials have been given direction to do so by the Central Board of Direct Taxes (CBDT), an apex body of the income tax department, officials told ANI.

A senior Finance Ministry official said, "Our officers will keep a close eye on the Cryptocurrency exchanges which are around 40 in number where transactions in major coins like Bitcoin, Etherium are going on."

Officials told ANI that out of 40 cryptocurrency exchanges, 10 are majorly dealing in the sale and purchase of cryptocurrencies and their turnover is between Rs 34,000 crore to Rs 1 trillion.

The official said other than crypto exchanges IT sleuths will also track the crypto transaction through reporting entities.

The official said that by July 1, 2022, when the department will start deducting 1 per cent Tax Deducted at Source (TDS) on crypto transactions, it will become easier for the department to track crypto transactions