Here's another post on SN regarding this development:

How Coinbase CEO Brian Armstrong Just Destroyed the Crypto Exchange Industry For All of India https://stacker.news/items/20540

A number of Indian cryptocurrency exchanges are facilitating peer-to-peer transactions as part of an ongoing effort to get around restrictions imposed by banks and payments companies.

The move has come in response to recent restrictions placed upon payments platforms in India according to local media reports.

Just a few days after Coinbase launched in India, it was forced to suspend its payments partner due to pressure from the central bank. The exchange planned to open with the popular Unified Payments Interface (UPI) service, but state financial regulators put the brakes on that, stating that they were not aware of any exchange using UPI.

Last week, Indian exchange CoinSwitch Kuber also halted crypto deposits and withdrawals through the payments network on its platform.

This has left Indians with a dwindling number of options for fiat to exchange payments as the banks tighten their grip on digital assets.

Investors and traders are already beginning to move funds overseas to use on international exchanges, however, there are also restrictions on this by India’s overreaching banking sector