RBI to Launch QR Code based Coin Vending Machine to Enhance Ease of Access to Coins
RBI Monetary Policy 2023: RBI Governor Shaktikanta Das said this while announcing the outcome of the Monetary Policy.
New Delhi: RBI Monetary Policy 2023 -- RBI Governor Shaktikanta Das on Wednesday said that the Reserve Bank of India will start a pilot project to launch QR code based coin vending machines.
Addressing the outcome of the Monetary Policy outcome for calendar year 2023, the Central Bank Governor said that the RBI will launch the QR code based coin vending machine to enhance ease of access to coins. The RBI Governor said that the pilot project will be launched in 12 cities which woould help especially the tier 2 cities and beyond where banking presence is lower.
"The Reserve Bank of India will launch a pilot project on QR Code based Coin Vending Machine (QCVM) in 12 cities. These vending machines will dispense coins against debit to the customer’s account using UPI instead of physical tendering of banknotes. 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," Governor Das said while announcing the Monetary Policy review.
The RBI document said that unlike cash-based traditional Coin Vending Machine, the QR Code Based Vending Machine would eliminate the need for physical tendering of banknotes and their authentication. Customers will also have the option to withdraw coins in required quantity and denominations in QCVMs.
"The pilot project is planned to be initially rolled out at 19 locations in 12 cities across the country. These vending machines are intended to be installed at public places such as railway stations, shopping malls, marketplaces to enhance ease and accessibility. Based on the learnings from the pilot tests, guidelines would be issued to banks to promote better distribution of coins using QCVMs," said the RBI document.
In a move that will raise borrowing costs for corporates and individuals even further, the RBI Monetary Policy Committee led by Governor Shaktikanta Das hiked Repo Rate by 25 basis points to 6.5 percent on Wednesday.
Repo is the rate at which Reserve Bank of India lends funds to commercial banks when needed. It is a tool that the central bank uses to control inflation. This is the third hike since the beginning of the current financial year, taking the rate is back to pre-pandemic levels in order to tame the inflationary pressure.