Coinbase India tells users to stop requesting rupee withdrawals, blames bank outage

Coinbase India has told customers to stop submitting Indian rupee withdrawal requests after an outage at its banking partner left INR payouts unavailable since November 9, 2026. In an X post on November 14, 2026, the exchange said new requests could fail or stay pending and that customer funds are safe, but it has given no restoration date and has not named the bank.

Coinbase India warns users against new INR withdrawal requests

On November 14, Coinbase India reiterated through its official X account that INR withdrawals remained temporarily unavailable because of an outage affecting its banking partner.

The exchange advised customers not to submit additional withdrawal requests during the disruption. According to its warning, transactions initiated while the issue persists could fail or remain stuck in a pending state.

Coinbase also reassured customers that their funds were safe. The company said it was working alongside the affected banking partner to restore withdrawal services as quickly as possible.

Importantly, the disruption is concentrated on outgoing INR payments. Coinbase’s status updates indicate that INR deposits, UPI payments and bank account linking are functioning normally following an earlier update to the incident.

The prolonged interruption has nevertheless frustrated customers who depend on the exchange to transfer their rupee balances into their bank accounts. Some users have taken to X to question the length of the outage and demand clearer communication about when withdrawals will resume.

One affected user, posting on X, urged the exchange to reconsider its banking arrangements after experiencing difficulties accessing funds for several days. The complaints highlight how a problem involving an external payment provider can affect customer confidence in a cryptocurrency platform.

Coinbase has not identified the banking partner publicly or provided a firm restoration deadline.

The timing is particularly significant because Coinbase only recently strengthened its Indian payment infrastructure. In May 2026, the exchange announced the introduction of direct INR payment rails through the Immediate Payment Service (IMPS), following its registration with India’s Financial Intelligence Unit (FIU-IND).

The development was intended to make rupee deposits and withdrawals more accessible to Indian customers. The current disruption, however, demonstrates the importance of dependable banking relationships in maintaining uninterrupted fiat access.

Unocoin investigates security breach as ZebPay reports delays

The difficulties are not limited to Coinbase India, although the underlying causes differ across the affected platforms.

Unocoin, an established Indian cryptocurrency exchange, suspended platform services on November 9 after identifying unauthorised activity involving its infrastructure. The company had initially detected suspicious activity on November 6 and requested freezes on its enterprise accounts with cryptocurrency custody providers Fireblocks and BitGo.

According to Unocoin’s November 12 security update, further unauthorised activity prompted the company to suspend services to protect customer assets and information.

The investigation subsequently uncovered additional concerns involving outgoing transactions from an Ethereum wallet address within its BitGo infrastructure. In its November 13 update, Unocoin said BitGo had provided clarifications indicating that the transactions were signed and broadcast directly on-chain without using BitGo’s platform.

The exchange said it was investigating how a backup mechanism associated with its multisignature wallets may have been exploited. The full extent of the incident and any potential cryptocurrency losses had not been established in the update.

Unocoin also disclosed that more than 90% of customer cryptocurrency holdings were maintained in cold storage, while its technical team worked to rebuild its infrastructure and investigate the breach.

ZebPay is experiencing a different operational challenge. The exchange has reported that INR withdrawals remain available but are taking longer than usual because of a technical disruption at its banking partner.

The combination of these incidents has placed additional pressure on India’s cryptocurrency market, with customers encountering withdrawal delays, suspended platform access and security-related uncertainty across different exchanges.

India’s crypto banking restrictions add to industry concerns

The latest disruptions are unfolding against a complicated regulatory background. India’s approach to cryptocurrency continues to combine taxation and transaction monitoring with warnings from financial regulators about the risks associated with digital assets.

The Reserve Bank of India (RBI) has repeatedly expressed concerns about cryptocurrency exposure within the traditional banking system. Its senior officials have warned financial institutions about the potential financial stability risks associated with virtual digital assets.

In June 2026, RBI deputy governors reportedly reiterated the central bank’s preference for banks and regulated financial institutions to remain cautious about cryptocurrency-related activities.

However, India’s regulatory position does not amount to a blanket prohibition on cryptocurrency trading. Individuals can trade virtual digital assets under the country’s existing tax framework, subject to applicable reporting and compliance requirements.

India currently imposes a 30% tax on income from transfers of virtual digital assets, alongside a 1% tax deducted at source (TDS) on qualifying transactions, subject to the relevant statutory provisions.

This creates a challenging environment for exchanges seeking to provide convenient banking services while meeting regulatory obligations.

For Coinbase India, restoring INR withdrawals will be an important step toward maintaining customer confidence in its recently expanded Indian operations. The exchange must also provide clearer communication about the disruption and the expected restoration of services.

For customers, the immediate concern remains access to their money. Until the banking outage is resolved, investors will have to contend with uncertainty over withdrawal processing, even as Coinbase continues to insist that their funds are safe.