The RBI stated in its Statement on Developmental and Regulatory Policies that it is putting up a pilot project on QR code-based coin vending machines (QCVM) in partnership with a few major banks to increase coin distribution to the general population. The QCVM 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 using QCVMs in the needed number and denominations. Coins are in a weird scenario where there is a high demand in pockets and a high supply that is occupying a lot of storage space and not being distributed effectively. Making coins available where there is a need is one method to increase currency absorption into the system, according to Deputy Governor T Rabi Sankar.
In the past, the RBI carefully placed coin-operated machines at marketplaces and busy spots to meet demand, although the money put into the machines was frequently counterfeit. This pushed the RBI to adopt the accessible UPI network rather than the currency dependence. “Therefore, you just transfer money from your bank account to the relevant bank and withdraw your change, as opposed to inserting currency and receiving change. We spent some time developing that machine, and we will eventually extend it. We are currently testing it out in a pilot.
In order to improve convenience and accessibility, the pilot project will first be implemented at 19 locations throughout 12 cities. These locations include market areas, malls, and train stations. “ The new QR-based pilot will make it easier to take coins via UPI while on the road. This will help UPI become widely accepted as a low-cost, straightforward, and preferred method of payment for all last-mile consumers. According to Anand Kumar Bajaj, Founder, MD, and CEO of PayNearby, “It will also serve to complement merchant acceptance points, making the move from cash to digital payments swift and straightforward.”