Goldsikka, which runs various schemes to promote gold as an asset class, is setting up gold ATMS in various places in Hyderabad to enable people of the city to buy gold from ATMs. Depending upon the response, the company plans to expand across the country.

The ATM will allow users to buy gold, which will be certified for purity and weight, in denomination of half gram coins to 100gm bars. The company plans to offer prepaid cards which can be used to buy the gold at the ATMs. Later, it will integrate various bank cards as well for making the purchases, according to Sy Taruj, CEO, Goldsikka.

Goldsikka joined hands with Trunix Dataware LLP, a Chennai-based firm that is into providing software solutions for financial and banking requirements for various sectors, and also with KL Hi-Tech Secure Print, which provides secure print products and smart solutions to banks globally. The gold coins and bars from the ATM will have purity certificate and also mention the weight. Each gold ATM will have an inventory of about 5 kg and have security measures in place.

The prevalent rules of buying gold will apply, and purchases above Rs 2 lakh will require KYC specifications. All sales happening through the ATMs will have a two-factor authentication, including an OTP that will be sent to the registered mobile numbers.