At a time when the Reserve Bank of India (RBI) frowns on private virtual currencies, the proposal of cryptocurrency bank Cashaa to launch banking operations in India for customers of virtual currencies like Bitcoin from August, through the credit co-operative society route, has raised eyebrows in financial circles.
Cashaa says it has launched Unicas, the world’s first crypto-friendly financial institution with physical branches in India in association with the United Multistate Credit Co-operative Society. It allows services for both crypto and fiat (currencies) from a single savings account, Cashaa founder and CEO Kumar Gaurav said.
The “bank” has ambitious plans to extend loans to buy cryptocurrencies and open savings accounts for customers. The government is also planning to bring in a law to regulate cryptocurrencies.
Asked whether the firm has sought RBI’s permission to launch a “bank”, Gaurav said United is a multistate credit co-operative society which is “registered and works under the Registrar of Societies”. “As we give services to members only, we do not need the RBI’s permission for this model. United is also a member of the National Federation of Urban Co-operative Banks and Credit Societies Ltd (NAFCUB) vide membership No. 1753 and certified with ISO 9001:2008 for Quality Management Systems,” he said in an email reply to a questionnaire from The Indian Express.
A credit co-operative society doesn’t deal in banking business, instead it lends money only to its members. “This society doesn’t come under the RBI. The promoters of the so-called bank are taking the