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Source: The post is based on the article “Explained | RBI’s new pilot project on coin vending machine” published in The Hindu on 29th February 2023
What is the News?
The RBI Governor has said that the Reserve Bank of India(RBI) in collaboration with banks, would be launching a pilot project to assess the functioning of a QR-code based coin vending machine.
What is a QR-code based coin vending machine(QCVM)?
QCVM is a cashless coin dispensation machine that would dispense coins with the requisite amount being debited from the customer’s account using United Payments Interface (UPI).
It will eliminate the need for physical tendering of banknotes and their authentication.
It will be launched with the aim to promote the distribution of coins and enhance the accessibility to coins.
Customers will also have the option to withdraw coins in the required quantity and denominations in QCVMs.
Where will it be launched?
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.
Are coins significant for our economy?
As per the latest RBI bulletin, the total value of circulation of rupee coins stood at ₹28,857 crore as of December 30 last year. The figure is an increase of 7.2% from the year ago period.
Circulation of small coins remained unchanged at ₹743 crores. For perspective, coins in India are issued in denominations of 50 paise, one rupee, two rupees, five rupees, ten rupees, and twenty rupees.
Coins of up to 50 paise are called ‘small coins’ while those of one rupee and above are called ‘rupee coins’.