Very soon citizens can take a loan against their cryptocurrencies from a multistate cooperative bank, as United Multistate Credit Co. Operative Society has tie-up with Cashaa, the world’s first crypto-friendly banking platform.
The bank has recently announced its joint venture agreement under which UNICAS, will create the world’s first crypto-friendly financial institution with physical branches and operations. It also becomes the first crypto-friendly banking platform that is regulated by the Reserve Bank of India (RBI), India’s central bank.
It also aims to provide online crypto banking services and walk-in services across its 34 physical branches in northern India after this JV agreement with Cashaa.
Speaking on this development, United Multistate Credit Co. Operative Society managing director Dinesh Kukreja who has been appointed as the CEO of the new UNICAS venture, said, ‘This will allow us to build, scale and offer customized financial and crypto products for the local Indian markets’.
Under Kukreja’s tenure, the brand has certainly impacted, hopefully for the better, the lives of millions via financial services. The venture is also a member of NAFCUB – the National Federation of Urban Co-operative Banks and Credit Societies Ltd.
Cashaa Founder & CEO Kumar Gaurav has said that the increased interest in cryptocurrencies was a major reason for them to integrate cryptos into the legacy banking system.
UNICAS will also help disseminate reliable information about crypto currencies to the mainstream Indian population and help further the adoption of cryptos in India. With the addition of crypto currency services to a traditional bank, the bank will be able to help India adopt a more digitized payment system.
While the Supreme Court of India recently removed the RBI ban on trading of crypto currencies using banking platforms in March 2020, most banks are still hesitant of providing services to crypto companies and individuals dealing in digital currencies.
UNICAS will allow its account holders to integrate cryptocurrency wallets directly with their accounts. Customers will also be able to directly buy Bitcoin (BTC), Ether (ETH), Ripple (XRP) and Cashaa (CAS) by paying either in cash or directly from their account.
Other than buying cryptos, savings account holders will be able to take out loans against crypto currencies.
Gaurav also said that media reports on a possible crypto ban are speculative stories, and regulations will most likely not be a hurdle for Cashaa India to offer crypto services to its users in India.
Indian parliament has recently postponed the bill on the crypto currencies, which can now be taken in the upcoming winter session, where the government will clear its view on crypto currencies.
During the COVID pandemic, Cashaa recorded an increase of 800% in its operations and businesses. Recently, it has also raised USD $5 million from O1EX, a Dubai-based investment fund.