The UK-based Cashaa, a Cryptocurrency bank is set to launch operations in India from mid-August. Unicas, a Joint Venture between United and Cashaa claims to be the World's first cryptocurrency financial institution with physical branch locations.
The crypto bank will offer saving, lending and trading services. Soon after its launch around Independence Day, the bank has plans to allow its users to open a fixed deposit (FD) or recurring deposit (RD) in Bitcoin and other cryptocurrencies, just like bank FDs.
The FD in crypto will have a specific maturity period. Similarly, like a bank RD, Cashaa plans to allow small investors to invest small sums on a daily basis as per their pocket.
"Our aim is to cater to retail investors/traders. Just like bank FDs and RDs, where retail investors invest to secure their future goals, we may bring out FD and RD facility in cryptocurrencies where small investors can invest small amounts say Rs 1,000 as and when they want. The USP of Cashaa is you will be able to walk in a branch, and do operations, ask questions," says Dinesh Kukreja, Managing Partner and CEO, UNICAS.
ZebPay, a cryptocurrency exchange already offers fixed-crypto deposit where you can deposit your cryptocurrency with them for up to 90 days period and earn a fixed interest on your deposit.
Currently, Unicas has three branches in the country in Delhi, Jaipur and Gujarat. The head office is in Jaipur, Rajasthan. "We hope to open more branches all over the country soon," says Kukreja.
Cashaa has various products under Savings Account for Indian Rupees and cryptocurrency. It will offer interest rate from 4 per cent per annum to 9.67 per cent per annum. Interestingly, the crypto bank will also provide door-step service to its premium customers in cities where they have physical branches.
You may also take a loan using your cryptocurrency as collateral. Unicas will charge interest at the rate of 0.04 per cent daily. It also allows borrowing for a duration as low as one day.
According to Cashaa, Indian banks appear to be cracking down on cryptocurrency and exchanges, although cryptocurrencies have not been formally banned in India. As a result, the exchanges are now turning to Cashaa for fiat services.
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