20 July 2026
Indian Crypto Exchanges Struggle as Banks cut ties after RBI statements
Indian Crypto Exchanges are struggling to seek viable, permanent payment solutions for seamless transactions as banks started cutting ties with them amidst the uncertain regulations.
The cryptocurrency exchanges are facing a tough time due to the unfavourable stance of the Reserve Bank of India [RBI] towards digital assets. RBI has released its objection to banks using its old circular to refrain from processing crypto payments out of concern over their impact on financial stability. It has also informally asked banks to steer clear of them.
Customer complaints have overwhelmed all India's major exchanges as the pullout by major payment gateways has hit transactions drastically. As per Avinash Shekhar, a co-chief executive of ZebPay, banks were reluctant to do business. This resulted in delayed settlements, due to which they have ventured out for other payment processing options. He stated, "We have been talking to several payment partners, but the progress has been slow."
The exchanges are looking to collaborate with smaller payment gateways, building their own payment processors, holding back on immediate settlements, or offering only peer-to-peer transactions, as per the heads of five crypto exchanges. Out of these, Coinswitch and WazirX have partnered with a smaller payment processing firm, Airpay, for instant transfers. This payment gateway is backed by venture capital fund Kalaari Capital and billionaire stock investor Rakesh Jhunjhunwala.
Meanwhile, WazirX has to stick with P2P transactions on certain days, while others, like Vauld, enable bank transfers with manual settlement as they search for a payment processor, backing up settlements.
However, these smaller payment gateways have not proved to be very successful in executing high volumes of transactions, leading to failures that resulted in a flood of user complaints.
"Partnership with the smaller payment processors has not emerged as stable yet, and is more of a temporary solution," said the founder of an Indian crypto exchange, who spoke on condition of anonymity. Indian traders have faced huge losses and missed opportunities due to the payment hurdles.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.
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