Banking services platform Cashaa is offering a solution for Indian crypto owners facing banking restrictions imposed by the country’s central bank, the Reserve Bank of India (RBI). The service allows users to deposit up to 1 crore rupees (~$141,012) per month to purchase cryptocurrencies.
Also read: Indian Finance Minister Answers Crypto Questions at IMF Meeting
Cashaa’s Banking Solution
U.K.-based online banking platform Cashaa announced Monday that it will start enabling users to buy cryptocurrencies with INR on Oct. 23. The company explained that “While access to crypto in India through banking no longer exists, Cashaa was able to find a solution,” elaborating:
On the occasion of Diwali, an Indian festival for wealth and prosperity, Cashaa will be enabling INR deposits and purchases of crypto in India for Indian residents, up to 1 crore INR per month.
Cashaa cofounder Janina Lowisz confirmed to news.Bitcoin.com on Tuesday that “people can buy BTC, ETH and our own token CAS with INR so far,” noting that BCH will be added by Christmas.
To access Cashaa’s banking services, users need to have the platform’s native token. “We will enable this [buy crypto with INR] service for Indian residents who have at least 2,500 CAS in their Cashaa wallet,” CEO Kumar Gaurav said earlier this month. The coin, currently trading at $0.008, can be used to pay for services and fees on the platform.
Founded in June 2016, Cashaa currently offers personal and business accounts. A large number of its users are in India, the company revealed. Its services allow users to purchase cryptocurrencies using credit or debit cards, deposit funds via bank transfer in over 200 countries, and withdraw funds in users’ local currency. In addition, the company claims that its “crypto-friendly bank accounts have received a huge demand including more than 700 business signups, many of which are in the process of onboarding.”
Banking Restrictions and Regulatory Uncertainty
Cashaa explained that it has been working to provide a solution to users in India ever since the RBI banned financial institutions from providing services to businesses dealing in cryptocurrencies. The ban went into effect in July last year and banks subsequently closed accounts of crypto exchanges, forcing some of them to shut down. Several writ petitions have been filed with the country’s supreme court to challenge the ban. The court is scheduled to resume hearing the case on Nov. 19.
A number of crypto exchanges responded to the RBI ban by launching exchange-escrowed peer-to-peer (P2P) trading. Bitcoin.com also has a P2P marketplace for bitcoin cash available to users in India.
Meanwhile, a bigger issue is looming in India — the legal framework for cryptocurrency. A draft bill that seeks to ban all cryptocurrencies except state-issued ones is being considered by the Indian government, which has told the supreme court that this bill may be introduced in the next session of parliament. However, many people in the Indian crypto community believe that the bill is flawed and are heavily campaigning to convince the government to reevaluate the recommendations in the bill.
What do you think of Cashaa’s banking solution for crypto users in India? Let us know in the comments section below.
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Images courtesy of Shutterstock and Cashaa.
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