Cryptocurrencies have come a long way in India. What was once seen as a speculative investment is now a part of many people’s portfolios. As a result, more and more crypto investors are wondering how to withdraw crypto to an Indian bank in 2025. While the process has become smoother, it is still a bit tricky for new users. In this guide, we will explain how to withdraw cryptocurrency to a bank account in India, step by step.
Whether you’re looking to transfer crypto to Indian banks or convert your Bitcoin to INR, this article will provide you with practical information to make the process seamless.
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Why Crypto Withdrawal to Indian Banks is Important
With the rise in cryptocurrency trading and investment in India, the ability to easily transfer crypto into Indian rupees (INR) and withdraw funds into an Indian bank account has become a crucial step for many investors.
The Indian government’s stance on cryptocurrency is still evolving, but in 2025, many cryptocurrency exchanges and platforms are working hard to integrate with local banking systems. This allows users to withdraw crypto and transfer funds to their Indian bank accounts seamlessly.
However, before jumping into the withdrawal process, there are a few things to understand:
Regulatory Issues: Cryptocurrency regulations in India are still in flux. The government is working on clearer frameworks for crypto trading, tax, and withdrawal processes.
Banking Restrictions: Not all banks support cryptocurrency-related transactions. Some Indian banks have been cautious about dealing with crypto-related activities, while others have embraced the new wave of digital finance.
How to Withdraw Crypto to Indian Bank Accounts in 2025
Withdrawing crypto to an Indian bank is a straightforward process if you follow the steps carefully. Here’s how to do it:
Step 1: Choose a Crypto Exchange
The first step in withdrawing crypto to an Indian bank is choosing a reputable crypto exchange. Popular exchanges like WazirX, CoinDCX, ZebPay, and Koinex (which is now integrated with other platforms) allow you to trade and withdraw cryptocurrency in India.
Things to check before choosing an exchange:
Indian Bank Account Compatibility: Ensure the exchange supports withdrawals to Indian bank accounts.
Crypto Selection: Check if the exchange supports the cryptocurrency you plan to withdraw (Bitcoin, Ethereum, etc.).
Fees: Different exchanges charge different fees for withdrawing funds, so compare them before selecting one.
Security Features: Always choose an exchange with strong security protocols to protect your investments.
Step 2: Complete KYC Verification
Most crypto exchanges in India require you to complete KYC (Know Your Customer) verification before you can withdraw crypto to a bank account. This is a standard procedure to ensure the platform is in compliance with local financial regulations.
To complete KYC, you will need to submit:
A government-issued ID (Aadhaar card, Passport, etc.)
Proof of address (utility bill, bank statement, etc.)
A selfie for identity verification
Once your KYC is approved, you can proceed to the next step.
Step 3: Convert Crypto to INR
The next step is converting your cryptocurrency into Indian Rupees (INR). Most exchanges offer the option to trade your crypto for INR directly.
Here’s how it works:
Log in to your exchange account.
Go to the trading section and choose the crypto you want to convert (Bitcoin, Ethereum, etc.).
Select the INR trading pair (e.g., BTC/INR).
Sell your crypto for INR.
The INR balance will appear in your account, and you can proceed with the withdrawal.
Step 4: Withdraw Funds to Your Indian Bank
Once you’ve converted your crypto to INR, you can initiate the withdrawal process to your Indian bank account. Follow these steps:
Navigate to the Withdraw Section: Go to the withdrawal section of your exchange account.
Enter Bank Details: Provide your bank account number, IFSC code, and other required details.
Confirm Withdrawal: Double-check the withdrawal amount and confirm the transaction.
Wait for Processing: Bank transfers typically take anywhere from a few hours to 2-3 days, depending on the exchange and bank.
Best Way to Withdraw Crypto in India
When it comes to withdrawing crypto in India, choosing the right platform and method is key to having a smooth transaction. Here are some options you can consider:
1. Centralized Crypto Exchanges
Centralized exchanges like WazirX, CoinDCX, and ZebPay are popular for withdrawals. They make the process easy by directly linking your Indian bank account. The downside is that centralized exchanges typically have withdrawal fees and may take some time to process transactions.
Pros:
Easy to use
Wide range of cryptos available
High liquidity
Cons:
Fees for withdrawing
May require KYC
2. P2P Crypto Platforms
If you’re looking for an alternative to centralized exchanges, Peer-to-Peer (P2P) platforms like LocalBitcoins or Paxful are also popular in India. These platforms allow you to directly trade with individuals and withdraw crypto to INR via bank transfer.
Pros:
No exchange fees
Direct transactions with users
Cons:
Requires more attention and safety precautions
May take longer to find a buyer
3. Using Crypto Debit Cards
Some platforms like BitPay or Wirex offer crypto debit cards that can be linked to your Indian bank account. These cards can be used to withdraw crypto as fiat currency directly from ATMs or make purchases.
Pros:
Instant access to funds
Allows easy spending
Cons:
Limited availability in India
Conversion fees
Frequently Asked Questions (FAQs)
1. How long does it take to withdraw crypto to Indian bank?
The withdrawal process can take anywhere from a few hours to 2-3 days, depending on the platform and the bank. Centralized exchanges generally take less time compared to P2P transactions.
2. Can I withdraw Bitcoin to an Indian bank account?
Yes, you can withdraw Bitcoin to your Indian bank account. First, you need to convert Bitcoin to INR on an exchange and then withdraw the INR to your bank account.
3. What is the best way to convert crypto to INR in India?
The best way to convert crypto to INR in India is by using a reliable crypto exchange that supports INR trading pairs, like WazirX, CoinDCX, or ZebPay. Alternatively, you can use P2P platforms to convert crypto directly.
4. Is crypto withdrawal taxable in India?
Yes, crypto withdrawal is taxable in India. Profits from crypto trading are subject to capital gains tax. As per the latest updates, a 30% tax on profits from cryptocurrency transactions has been introduced.
5. Which banks allow crypto deposits in India?
Some Indian banks have started supporting crypto transactions, while others remain cautious. Banks like HDFC, ICICI, and Axis have been more open to dealing with crypto transactions through exchanges, but this can vary.
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