An Indian company has launched what it says is the world's first "cash machine" that dispenses gold and silver coins and diamond-studded jewellery.

The Gitanjali Group launched the Gold and Diamond automatic teller machine at a central Mumbai shopping mall for the annual Hindu festival of lights, Diwali, on Wednesday.

The ATM offers customers the choice of up to 36 products of varying sizes, designs and prices, from 1,000 rupees to 30,000 rupees ($20 to $600). Payment is either through credit or debit card or by depositing cash.

The company said in a statement that the machine was "ideally suited for last minute purchases on auspicious occasions and for gifting".

Gitanjali, which runs a chain of jewellery shops across India, said it plans to install more machines in the coming months in shopping malls, airports and temples.