Cryptocurrency exchange Coinbase has temporarily suspended Indian Rupee (INR) withdrawals, leaving users unable to transfer funds to their bank accounts. The disruption, which began over five days ago, stems from an outage at its banking partner, affecting payouts for all the bank's clients, not just Coinbase.
Coinbase Confirms Outage, Assures Funds are Safe
On November 14, 2026, Coinbase India issued a statement on X (formerly Twitter) confirming the issue. The exchange clarified that while INR withdrawals are unavailable, customer funds remain secure. Other banking services, including INR deposits via UPI and bank account linking, are functioning normally.
"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. Your funds are safe. INR deposits (including UPI) and bank account linking are working as usual. We’re working with the bank around the clock to restore withdrawals as soon as possible," Coinbase India stated.
Many Coinbase users have taken to social media to express frustration over the prolonged inability to access their funds, with some urging the exchange to explore alternative banking solutions.
Other Exchanges Also Face Disruptions
The banking-related difficulties are not exclusive to Coinbase. Unocoin, another prominent cryptocurrency exchange in India, reportedly suspended all deposits and withdrawals on November 9, 2026, without providing a timeline for resumption. Meanwhile, ZebPay informed its customers on November 11, 2026, that INR withdrawals were experiencing delays due to technical problems at its banking partner. Unlike Coinbase and Unocoin, ZebPay's withdrawal services remain operational, though processing times have significantly increased.
Coinbase's Recent India Expansion
These disruptions come just months after Coinbase significantly expanded its operations in India. In June 2026, the company launched direct INR deposit and withdrawal services, along with spot and perpetual futures trading. Coinbase integrated with India's Immediate Payment Service (IMPS) to facilitate direct bank transfers and also registered with India's Financial Intelligence Unit (FIU-IND) to strengthen its compliance framework.
Regulatory Environment and Investor Impact
The current banking challenges highlight the cryptocurrency industry's reliance on traditional banking infrastructure for fiat currency conversions. This occurs amidst ongoing regulatory scrutiny in India, where the Reserve Bank of India (RBI) has previously warned financial institutions about the risks associated with virtual digital assets. India currently imposes a 30% tax on gains from virtual digital assets, along with a 1% Tax Deducted at Source (TDS) on applicable transactions. For investors, these recent outages underscore the critical importance of reliable banking access when managing cryptocurrency holdings.