Coinbase halts INR withdrawals in India amid banking outage; Unocoin, ZebPay users also face disruptions

Cryptocurrency exchange Coinbase has temporarily suspended Indian rupee (INR) withdrawals following an outage at its banking partner, leaving users unable to transfer funds to their bank accounts. The disruption has reportedly continued for more than five days, with no confirmed timeline for restoring services.

In a statement posted on X on November 14, Coinbase India said, "INR withdrawals are temporarily unavailable due to an outage at our banking partner. The outage is affecting the bank’s payouts for all of its clients, not just Coinbase."

The exchange assured customers that their funds remained secure and clarified that other banking services were functioning normally.

"Your funds are safe. INR deposits (including UPI) and bank account linking are working as usual," Coinbase said.

It added, "We’re working with the bank around the clock to restore withdrawals as soon as possible."

Several Coinbase users expressed frustration on social media, claiming they had been unable to withdraw funds for over five days.

Some urged the exchange to consider alternative banking arrangements to prevent prolonged disruptions.

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While INR withdrawals remain unavailable, customers can continue depositing funds through supported payment channels, including UPI.

Unocoin and ZebPay also report disruptions

Coinbase is not the only cryptocurrency exchange experiencing banking-related difficulties in India.

Unocoin reportedly suspended all deposits and withdrawals on November 9, 2026, without announcing a timeline for resuming operations.

Meanwhile, ZebPay informed customers on November 11 that INR withdrawals were experiencing delays because of technical problems at its banking partner.

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Unlike Coinbase and Unocoin, ZebPay's withdrawal services reportedly remain operational, although processing times have increased.

The disruptions highlight the cryptocurrency industry's dependence on banking infrastructure for converting digital assets into fiat currency.

Coinbase recently expanded India operations

The outage comes just months after Coinbase strengthened its presence in India.

In June 2026, Coinbase Global introduced direct INR deposits and withdrawals alongside spot and perpetual futures trading services.

The company integrated with India's banking network through the Immediate Payment Service (IMPS), allowing customers to transfer funds directly between bank accounts and the exchange.

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The initiative aimed to reduce dependence on peer-to-peer transactions and third-party intermediaries.

Coinbase also registered with India's Financial Intelligence Unit (FIU-IND), strengthening its compliance framework.

Regulatory concerns persist

The disruptions come amid continued regulatory caution surrounding cryptocurrencies in India.

In June, RBI deputy governors warned financial institutions about risks associated with virtual digital assets and discouraged direct exposure to cryptocurrency businesses.

India currently taxes gains from virtual digital assets at 30%, alongside a 1% tax deducted at source on applicable transactions.

For investors, the latest outages underscore the importance of reliable banking access, particularly when converting cryptocurrency holdings into rupees.

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