How to Buy Bitcoin With Bank Account

Bank transfer is usually the cheapest deposit method to buy bitcoin. The surge of crypto investors in India has grown tremendously over the last year. Due to the increasing popularity and demand, crypto exchanges have included deposit methods like bank transfer and net banking to provide their users with a wide range of payment options. 

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A bank transfer is a digital transfer of money from one bank to another. There are numerous ways of transferring money; this includes wire transfer, net banking, NEFT (National Electronic Fund Transfer), RTGS (Real-time Gross Settlement) and IMPS (Immediate Payment Service). You can buy Bitcoin in India using any of these methods. However, the availability of these payment options depends on crypto trading platforms and supported banks

The crypto trading landscape in India is still in its nascent stage. The good news is the Indian government is working on full-fledged legislation for crypto-assets and blockchain technology.

Although this hold-up has made it difficult to find the bank transfer option in global crypto exchanges, this article will guide you through everything you need to know to buy bitcoin with a bank account in India.  


Benefits of Buying Bitcoin with Bank Transfer

Bank transfer is the preferred option in two scenarios: one, when you intend to buy large amounts of bitcoin; and two, when you don’t have access to other payment methods like debit card or credit card

  1. High Buying Limits: Some retail investors and most institutional investors make large deposits and withdrawals. And bank transfer is the safest option to involve in such trades as they offer the highest buying limits compared to any other payment method. 
  2. Low (or no) Payment Processing Fee: Since bank transfers are considered a less-risk payment mode by the crypto exchanges, the fees are significantly lower, and in some cases, it is free of charge. If you purchase bitcoin for ₹10,000 via bank transfer, you don’t have to pay any transaction fee. While if you make the same purchase with a debit card or credit card, you’d have to pay somewhere around ₹200 in transaction fees (1–3% fee).
  3. Bank Transfer Options: In India, there are three different methods to transfer money from your bank account: NEFT, RTGS and IMPS. Each of these options has its merits. And depending on your requirements, you can pick the best option.


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How to Purchase Bitcoin using Bank Account

In this step-by-step guide, I’ll show you how to buy Bitcoin using the ZebPay exchange. This process is similar throughout most global bitcoin exchanges. 

STEP 1: Add your bank account to the exchange 

To avail the bank transfer option, you first need to add your bank account. 

  • Go to Deposit > Add bank account and enter your bank account details. You also need to attach an image of a cancelled cheque leaf
  • Then submit your ID document, address proof and declaration to complete the KYC verification
  • Once the verification is approved, you are ready to purchase bitcoin using your bank account. 

STEP 2: Add beneficiary account 

To initiate a bank transfer, you only require two details: the account number and IFSC code of the destination account. You can find these beneficiary details under Deposit > Bank Transfer in ZebPay mobile app.

  • Log in to your bank account via net banking
  • Go to the Fund Transfer tab and click on Add beneficiary. Select Transfer to other bank and enter the account number and IFSC code of the exchange. ZebPay’s company details (beneficiary name and bank name) will auto-populate.
  • Verify the details and Click Add

 STEP 3: Make the deposit 

The beneficiary will be added in a few minutes. Once the bank account is added, you have to make the deposit. 

  • Go to the Fund Transfer tab on your net banking, and select Transfer to other bank. You can opt for NEFT, RTGS or IMPS depending on your requirement. 
  • Select beneficiary account from the dropdown and enter the amount you want to transfer to ZebPay account. 
  • Verify the details and complete payment. 

Once the payment is processed, you will receive the Bitcoin in your ZebPay wallet. 

Note: The deposit should be made from the same bank account that you have registered with ZebPay


Things to Consider When Buying Bitcoin Using Bank Account

If you plan to purchase bitcoin using the bank transfer option, you should be aware of certain elements that dictate the payment process. 

  1. Slow Processing Time: Bank transfers are slow in most countries and typically take around 2–4 days to settle a transaction.  And this consequently makes buying bitcoin using bank transfer slower than other payment options. And considering the high volatility of the crypto market, there could be a significant price change during that time.
  2. High Minimum Buy Limits: Since the buying limits are higher in the bank transfer method, the minimum buy limit also tends to be large. For instance, in ZebPay, the minimum amount required to buy bitcoin using the bank transfer method is ₹ 20,000.
  3. Limited Banks: Due to the uncertainty in crypto regulation in India, not all banks support deposits and withdrawals through cryptocurrency exchanges.
  4. Mandatory Verification: Almost all bank transfers globally require ID verification. This is to ensure that you are the legal owner of your bank account. The process might be extensive depending on the exchange and require personal information, including a selfie.


How to Transfer Bitcoin to Bank Account

Let’s say you wish to sell Bitcoin at a decent price and want the money to be transferred to your bank account. Is this possible? The answer is yes, and no. 

You cannot withdraw bitcoin directly to bank account as it is not possible to liquidate cryptocurrencies by sending them to your bank account. 

However, you can withdraw bitcoin to bank account by using peer-to-peer (P2P) trading platforms like LocalBitcoins. On those platforms, you’ll find several traders who would like to buy bitcoin from others and transfer the equivalent INR to the seller’s bank account. 

As you can see, this transaction is not a direct BTC to INR conversion. Instead, the buyer sends the agreed INR to your bank account, and you’ll transfer the bitcoins to their Bitcoin wallet