An ATM in India now dispenses gold coins instead of cash in what local media have said is a world first.

Users can buy the gold coins around-the-clock in Hyderabad from the ATM, operated by Goldsikka, a company that specialises in the buying and selling of gold.

How much of the local currency the gold will set users back depends on the market price, determined by London’s Bullion Market price.

In the video, one gram is priced at around 5800 Indian Rupees so someone buying 100 grams at the current market price could cost 5,80,000 Indian Rupees.

The machine currently dispenses only 0.5 grams because of high demand and due to limited storage capacity in the ATMs.

The company is planning to increase its holdings of higher denominations in the coming days.

The company has plans to install over 3,000 ATMs all over India over the next two years. Gold is sometimes seen as a safe investment in India.

The Hyderabad-based company, Goldsikka Limited, on December 3 opened a real-time gold ATM in Hyderabad's Begumpet, allowing customers to buy gold without going to any Jewellery stores.The prices are displayed live on the screen making it transparent and clear for the customers and the coins are dispensed in tamper-proof packs certified with 999 purity. All of the gold currency dispensed by the gold ATM is 24-carat, regarded as the purest type of gold.

The ATM has a capacity of storing 5kgs of gold. There are 8 available options for the quantity of gold starting from 0.5 grams to 100 grams. Customers can use their debit or credit card to buy gold coins of different denominations.

The company has plans to install over 3,000 machines all over India in the coming two years.

The rates are measured as per the London Bullion Market Price and it keeps changing according to the market price.

As you can see in the attached image,1 gram is priced at around Rs 5800. So every 0.5 grams costs Rs 2800. Likewise, if someone is buying 100 grams it could cost them Rs 5,80,000 Indian Rupees. But the machine currently dispenses only 0.5 grams because of its high demand for this value and due to limited storage capacity in the ATMs, but the company is planning to increase the higher denominations in the coming days.