Despite the government and Reserve Bank of India’s (RBI) crackdown on cryptocurrency in India, virtual currency exchange Unocoin has installed a currency deposit and dispensing ATM at Kemp Fort Mall in Bengaluru.
The kiosk, installed by Unocoin, allows its customers to deposit and withdraw minimum amount of Rs 1000 from the platform.
First of its kind in India, this ATM circumvents the RBI regulation against bitcoins transaction. RBI has ruled earlier this year that financial institutions associated with RBI are not permitted to deal with cryptocurrencies. However, ATMs are a part of any financial institution with RBI.
Acknowledging RBI’s notification on ‘Prohibition on Dealing in Virtual Currencies’, Unocoin said in a statement that it is merely attempting to accommodate “newer mechanisms and solutions to reduce the hurdle facing (regulatory) hurdles by the present central governments stand.”
How it works
In order to deposit money into the ATM, KYC compliant customers have to enter their User ID and the OTP that they receive as SMS on their registered mobile number. The user would then confirm his account details and deposit the funds into the Kiosk machine. Their Unocoin account will be updated with the deposited funds immediately. And these funds can be used to buy Bitcoin (BTC) or Ethereum (ETH), or on Unodax to place BID orders on 30 different crypto assets.
The withdrawal, however, is a lengthier process. Users will have to make a request by visiting the Unocoin website or through mobile platform and specify the desired amount for withdrawal. A 12-digit reference number from Unocoin is then sent to the user. Post that, the user can visit the ATM, enter the reference number and OTP received on their registered mobile number to withdraw the cash.
At present, the pilot ATM that was unveiled earlier this week is not operational yet. Unocoin plans to eventually set up similar installations in Mumbai and Delhi.
Story by Story Infinity (Subs and Scribes Media Ventures LLP.)