Mumbai, May 21: The Bombay High Court has directed Yes Bank to restore API and banking services to crypto exchange platform WazirX, observing that denial of access could severely affect business operations.
A vacation bench of Justice Gautam Ankhad and Justice Sandesh Patil passed the ad-interim order on May 20 while hearing a petition filed by Zanmai Labs Pvt Ltd, which operates the platform.
The petitioner stated that WazirX had been using the API services of Yes Bank since February 2024 for fund transfers. The bank informed the company in March 2024 that services would be discontinued from April 22 due to internal policy changes.
Services allegedly discontinued without notice
Senior advocate Mustafa Doctor, appearing for WazirX, told the court that the bank later withdrew the discontinuation notice on April 16 and assured the company that API services would continue. However, the services were allegedly “abruptly discontinued” on April 21 without prior notice.
WazirX approached the Banking Ombudsman on April 30, but no action was taken. On May 12, the bank blocked manual access to payment applications. Doctor argued that the move had brought the company’s business “to a complete standstill” and caused “grave commercial prejudice”.
Advocate Hita Chandarana, appearing for the Reserve Bank of India, submitted that there was no regulatory framework to direct the bank to provide API facilities.
Counsel for Yes Bank, Niyomi Jariwala, argued that the matter involved a contractual arrangement and API access was a discretionary service. She added that manual banking access would be restored, though the bank opposed API restoration due to an internal review.
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Court orders restoration within three days
The court noted that services were disabled on the basis of unspecified internal policies and that the company lacked a forum for redressal. The bench directed the bank to restore all facilities within three working days and scheduled the next hearing for June 12.
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