Unocoin, a major crypto exchange in India has officially announced the launch of its crypto ATMs. The company’s CEO told media agencies that, initially, the company plans to deploy 30 machines in three Indian cities. “These ATMs help people to cash in and cash out which was not possible before.” This refers to the crypto banking ban imposed by the Reserve Bank of India.
30 Crypto ATMs in 3 Cities
Last week, the exchange confirmed the existence of the project. This came after someone spotted one of the machines and posted a picture of it on social media. The company explained that all customers of Unocoin can deposit and withdraw rupees using the ATMs. “Users are subject to some limits on deposits and withdrawals per transaction and per day subject to cash handling restrictions in India,” the exchange clarified.
The minimum amount for deposits and withdrawals is 1,000 rupees (~$13.57) and must be in multiples of 500 rupees. By depositing cash through the ATM machines you can buy all coins available on Unocoin and Unodax. Unocoin is a Bangalore-based startup which was established in 2013. The exchange claims that it has processed transactions worth more than 2 billion rupees for over 1.3 million customers.
Solution to RBI Crypto Banking Ban
India’s central bank, the Reserve Bank of India (RBI), issued a circular in April banning financial institutions under its control from providing services to crypto businesses. The ban went into effect in July and all crypto exchanges in India subsequently lost their ability to provide rupee deposit and withdrawal services. Unocoin announced the suspension of its fiat support on July 13. The company has been looking for new mechanisms to allow its users to deposit and withdraw rupees ever since.
Vishwanath clarified that “The ATMs deployed by us do not need any banking partnerships. These are stand-alone machines that can accept and dispense cash. These ATMs help people to cash in and cash out which was not possible before due to RBI restriction on banks to not provide bank accounts. The gap is now completely filled by these ATMs except that physical access is required to deposit and withdraw money.”
How to Deposit and Withdraw INR Using Unocoin ATMs
In its Sunday announcement, Unocoin detailed how users can deposit and withdraw rupees using its ATMs. To deposit INR, a user needs to enter his user ID and the OTP. The user’s account will be updated and funds credited for use on both Unocoin and Unodax after a successful transaction.
To withdraw INR, “users have to make a request by visiting Unocoin.com or through Unocoin mobile app where he would specify [the] desired amount for withdrawal.” A 12-digit reference number from Unocoin will then be sent to the user to enter into the ATM, along with the OTP.
The complete implementation of these crypto ATMs is still unclear. It’s interesting to see if this can save the future of cryptocurrencies in India after the RBI ban. The ban has run many startups out of business including India’s largest exchange, Zebpay. Zebpay decided to close its operations since it could not find a viable workaround to the crypto ban.