Cashaa, a London-based online banking platform, plans to launch a cryptocompatible neobank (or internet bank) in India.
Kuman Gaurav, the founder of Cashaa, told Cointelegraph that With Cashaa India, Indian companies and individuals can open a savings account with them and buy, store and store cryptocurrencies like any other financial instrument.
“For loans, we will add the crypto asset class along with gold and real estate as collateral,” he said.
Explaining the need for a cryptocompatible bank in India, Gaurav said that most Indian banks refuse to offer banking services to crypto servers. Cashaa India, he added, would be the first registered bank to allow deposits and withdrawals in cryptocurrency, as is the case today for the Indian rupee.
Cashaa has provided B2B banking services to most of the major Indian cryptocurrency companies. With the introduction of Neobank, the platform can also expand its banking and crypto services to people.
Cashaa recently received regulatory approval to act as a cryptocurrency-friendly internet banking platform in the UK, Europe and the US. The company intends to operate the banking platform with support from the euro, the British pound and the US dollar by December this year.
Gaurav said Cashaa will initially provide its banking services to Indian cooperatives and will offer its full services over the next year. The company’s focus is on “three key states” in India from where it plans to expand across the country.
Gaurav thought about the rules in India Fintech regulations in the country are evolving. He said that is why it is so difficult to use one-time passwords and phishing techniques to limit financial fraud.
He added that the Indian government and financial institutions are aware of the potential of cryptocurrencies and the government has provided no indication of a possible ban on cryptocurrencies. Reports of the impending ban on cryptocurrencies in India by the media have been just speculative stories, he stressed, adding that regulations for Cashaa India are unlikely to be an obstacle to offering cryptocurrency services to its users.