Unocoin launches ATM to bypass RBI diktat on cryptocurrencies

Cryptocurrency exchange Unocoin has unveiled an ATM in Bengaluru which aims to bypass the Reserve Bank of India (RBI) diktat banning banks to do any business with cryptocurrency companies.

Using the ATM, Unicoin users can deposit and withdraw cash in legal currency from their respective Unocoin account. The company said it will open more such kiosks in Mumbai and Delhi in a couple of weeks.

“Due to the RBI’s recent notification on ‘Prohibition on Dealing in Virtual Currencies’, our banking relationships were disrupted some time ago. Since then, we were in process of deploying new mechanisms for INR deposits and withdrawals. This was not a small undertaking and it took us some time to deploy new solutions, and now we are here with the implementation of Kiosk,” Unocoin said in a statement.

Source of video: company website

How to use the ATM:

A user needs to have a Unocoin account to be able to transact at the ATM

For deposits

-Enter your User ID at the ATM. You will receive an OTP on your registered number

-Enter the OTP and confirm the account details

-Follow instructions to deposit the cash. Your account will be instantly updated to reflect the deposit. You can now use the fund to purchase crypto-assets.

For withdrawal

-Using the Unocoin website or app, make a request for withdrawal specifying the desired amount

-A 12-digit reference number will be sent to the registered mobile number

-Go to the ATM and enter the reference number. An OTP will be sent to you

-Enter the OTP it the machine to finally withdraw the cash

RBI has barred banks from doing business with cryptocurrency companies making it difficult for them to process payments in Indian rupee. Exchanges have devised innovative idea which includes peer-to-peer payments to bypass the RBI diktat.

However, people dealing in cryptocurrency should be aware that the government has not cleared its stance on crypto-assets and sources in the government say India may look at amending existing laws that could make holding crypto assets, other than those not approved by the government, a punishable offence.