Crypto platform makes banking entry in India with co-op credit society tie-up
Cashaa, a London-based online cryptocurrency platform, has tied up with the United Multistate Credit Cooperative Society to provide savings accounts and loans to its customers and crypto investors in India. The society has 56,000 customers and branches in Rajasthan, Delhi and Gujarat. The joint venture called Unicas will offer interest on crypto deposits and the society will also give out loans against cryptocurrency.
Cashaa provides clearing services and offshore bank accounts to cryptocurrency exchanges in India. “For rupee loans against crypto, since the cryptocurrency has to be deposited in our wallet as collateral, the approval is instantaneous. The deposit acts as lien in case of default. This is much easier than taking loans against real estate where title deeds and other documents have to be verified.
Customers can also maintain crypto savings accounts with Unicas and get interest in the same cryptocurrency as the deposit. For instance a bitcoin deposit will get interest in bitcoin, said Kumar Gaurav, CEO, Cashaa.
“We have 56,000 customers and 16 of branches. 90% of our branches are in Tier 3 cities and mostly in Rajasthan, Delhi and Gujarat. Through this tie up, we will open up a new market and also open up cryptocurrency savings accounts and loans for our customers. We are very excited to take this forward,” said Dinesh Kukreja, CEO, The United Multistate Credit Cooperative Society Ltd.
Multistate Credit Cooperative Societies are regulated by the Central Registrar of Cooperative Societies rather than the RBI. No specific permission from the registrar is required for this, said Kukreja.
“We will also be tying up with other cooperative credit societies in the coming months. We will modernise and digitise their operations. Their branches will act as lounges where people will be given information about cryptocurrency. Our strategy will also rescue a struggling cooperative credit sector which has been forced to close branches and lay off staff due to Covid 19,” added Gaurav.