RBI will start a pilot project for coin vending machines that use QR codes
The Reserve Bank of India will start a pilot program for coin vending machines that use QR codes in 12 cities. Shaktikanta Das, governor of the RBI, made the declaration during the opening remarks of the Monetary Policy Committee meeting on Wednesday.
The QCVM [U1]is a cashless coin dispenser that eliminates the requirement for physical banknote tendering and their validation by dispensing coins in exchange for a debit to the customer’s bank account via the Unified Payments Interface (UPI). According to the central bank, customers will also be able to withdraw coins from QCVMs in the desired number and denominations.
The Governor stated that the goal of the deployment of these machines is to promote currency distribution and improve coin accessibility. Instead of physically tendering[U2] banknotes, the vending machines will issue coins in exchange for a debit to the customer’s account using UPI instead. This will enhance the ease of accessibility to coins. Based on the learnings from the pilot, guidelines will be issued to banks to promote distribution of coins using these machines.
Previously, the RBI carefully placed coin-operated machines at busy intersections and markets to meet the demand, but the issue was that the money being inserted into the machines was frequently counterfeited. This prompted the RBI to adopt the accessible UPI network rather than the currency dependence.
The RBI Governor also said that the Indian economy has recovered stronger than previously after surviving numerous significant shocks over the past three years. He added that India is well-equipped to handle upcoming challenges thanks to its natural strength along with a supportive political environment, and solid macroeconomic foundations and buffers. He said that since UPI has grown to be the most widely used retail digital payment method in the nation, the RBI is now considering allowing all foreign visitors to India to make merchant payments via UPI while they are in the country. All these steps by the government are expected to meet the growing demands and needs along with stabilizing the economy back to normal.
