Cashaa, blockchain-based fintech has tied up with United Multistate Cooperative Society, a credit cooperative society, to launch a crypto bank joint venture named UNICAS. It allows users to transact in cryptocurrency and fiat from one account. While the online services of UNICAS have already gone live, fourteen physical branches will be rolled out by Jan 2021 across the NCR, Rajasthan, and Gujarat.
The CEO of UNICAS, Dinesh Kukreja said that this will allow them to build, scale, and offer customized financial and crypto products for the Indian market. By the end of 2022, UNICAS plans to rapidly expand to 100 branches. He also stated that the United Multistate Cooperative Society does not need the Reserve Bank of India’s permission as it is a multi-State credit cooperative society working under the Registrar of Societies and provides services only to members.
The joint venture will enable Cashaa to access United’s regulatory licenses, its overall banking infrastructure, and physical branches. Under the Multi-state Cooperative Society Act 2002, United Multistate Cooperative is registered in Delhi and it serves in Gujarat, Rajasthan, and Delhi with a network of forty-three branches. Users will be able to deposit and withdraw through a savings account as the way they operate with traditional banks in India. For the first time in the world, a financial institution has allowed cryptocurrency trade through physical branches.
Kumar Gaurav, CEO, and Founder of Cashaa stated that if we are planning to move ahead with the aim of digital India, then we cannot hesitate in adopting new technologies and finding innovative ways to bring them to Tier one and Tier two cities in India. He also said that in addition to banking, UNICAS will also provide information and guidance on the level of convenience and security that blockchain technology offers. Currently, cryptocurrency is not regulated in India. It may be recalled that in March this year, a three-judge bench of the Supreme Court revoked a Reserve Bank of India ruling that banned any entity from dealing in or getting involved with cryptocurrency transactions.
UNICAS will be providing banking services for both fiat and crypto assets which include savings accounts, crypto exchange, crypto loan, and debit cards to spend crypto. By depositing crypto assets in the UNICAS wallet and requesting the equivalent value of rupee on their card or bank account, users may receive an instant loan digitally. The joint venture is combining United’s decade of experience in Indian traditional finance with Cashaa’s international banking and cryptocurrency to change both the crypto industry and the Indian fintech space.
With the rollout of the initial 14 branches, UNICAS aims to onboard 25 thousand customers within the first quarter of 2021. Cashaa which was launched in Oct 2018, has already been providing its services to more than 200 crypto exchanges, wallets, and start-ups dealing in crypto.
