The Reserve Bank of India (RBI) deputy governor T. Rabi Sankar said that QR Code-based Coin Vending Machine (QCVM) is expected to improve the distribution of coins into the system where demand is high.
“Coins we have a peculiar situation where the supply is very high, it is not getting properly distributed and at the same time, there is demand in pockets. So, one way of increasing absorption of coins into the system is to make coins available in places where there is demand,” Sankar said during the post-policy press conference.
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The QCVM is a cashless coin dispensation machine that would dispense coins against debit to the customer’s bank account using Unified Payments Interface (UPI).
He further added that earlier there were coin vending machines, where customers used to feed in cash and get coins. But, the problem then was the currency that was being fed into these machines was very often fake and that was an issue and RBI could not be checked at that point in time.
To get rid out of this problem, the RBI decided to prepare a pilot project on QCVM in collaboration with a few leading banks.
The RBI February 8 monetary policy announced a pilot project of QCVM.
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The central bank did not specify the bank's name and date when the pilot project is to begin.
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, and 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,” the release said.
Meanwhile, The RBI MPC hiked the repo rate by 25 basis points taking the key interest rate to 6.5%. Consequently, the SDF has gone up to 6.25% and MSF rose to 6.75%. The MPC also decided to continue with the withdrawal of accommodation stance.
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