In the latest MPC meeting, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced the launch of QR code-based coin vending machines (QCVMs) in 12 Indian cities soon.
The RBI Governor said, “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 the distribution of coins using these machines.”
For the unversed, coin vending machines are automated machines that dispense coins in exchange for bank notes.
How does the QCVM concept work?
Unlike traditional cash-based coin machines, QCVM does not require the issuance or verification of banknotes. Customers can also withdraw the desired amount and denomination of coins from QCVM.
The pilot project will start at 19 sites in 12 cities across the country. Initially, these vending machines will be installed in public areas including train stations, shopping malls and markets to ensure increased convenience and enable unbridled accessibility.
Depending on the pilot test results and operational viability, the banks will update and work on their coin circulation strategy using QCVMs.
Suresh Sadagopan, MD & Principal Officer, Ladder7 Wealth Planners said, “Good initiative to ease the coin shortage and increase ease of coin access. However, with increasing digital payments happening now, coin usage itself should stay around the same level or reduce. Hence this is a good measure to relieve the pressure in the short term. In the longer term, digital payments will predominate making coin usage much less than in the present.”
Technology has played a huge role in shaping the country’s financial sector. This underlines the decision to encourage constant innovations that would change the way people deal with their money.