RBI to launch QR code-based coin vending machines: Here’s how it will work
By Sanjay Maurya
Reserve Bank of India (RBI) Governor Shaktikanta Das today (February 8) said that the central bank will start a pilot project to launch QR code-based coin vending machines. This pilot project will be started in 12 cities.
The Governor stated that the purpose of launching the machines is to increase coin distribution and make it more accessible. The vending machines will dispense coins against debit to customer’s account using UPI instead of physical tendering of banknotes.
Reserve Bank of India
Governor: Shaktikanta Das
- Founded: 1 April 1935, Kolkata
- Founder: British Raj
- Currency: Indian rupee (₹)
- Reserves: $576.76 billion
- Central bank: India
- Ownership: Ministry of Finance, Government of India
“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,” said RBI Governor Shaktikanta Das.
The governor of the Reserve Bank of India announced the launch of a pilot project in 12 cities, with a focus on helping tier 2 cities and beyond where banking accessibility is limited.
The central bank will issue guidelines to banks to promote the distribution of coins using these machines, based on the insights gained from the pilot project.
These vending machines will dispense coins against debit to the customer’s account using UPI instead of physical tendering of banknotes. These vending machines are intended to be installed at public places such as railway stations, shopping malls, and marketplaces to enhance ease and accessibility. This will enhance the ease of accessibility to coins.
Based on the learnings from the pilot, guidelines will be issued to banks to promote the distribution of coins using these machines,” Governor Shaktikanta Das said. The RBI Monetary Policy Committee, headed by Governor Shaktikanta Das, increased the Repo Rate by 0.25% to 6.5% on Wednesday, causing a further rise in borrowing costs for corporations and individuals.
The repo rate is the rate at which the central bank of a country (in India, it is the Reserve Bank of India) lends money to commercial banks in the event of any shortfall of funds. By changing the repo rate, the central bank can control the money supply in the country and thus, control inflation.
