RBI to launch QR code-based coin vending machines in 12 cities
- In Reports
- 06:23 PM, Feb 08, 2023
- Myind Staff
Reserve Bank of India (RBI) Governor Shaktikanta Das said on Wednesday that the central bank would launch a pilot project on QR code-based coin vending machines (QCVM).
The announcement was made by RBI Governor Das during the Monetary Policy Committee meeting announcements on Wednesday.
The Governor said that these machines will be launched with an aim to promote distribution of coins, and enhance the accessibility to coins. The vending machines will dispense coins against debit to customer’s account using UPI instead of physical tendering of banknotes.
The pilot will be launched in 12 cities in the country, according to a report by ANI.
"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," the governor said.
He also said that UPI has become a hugely-popular retail digital payments system in the country. The RBI will now look at permitting all inbound travellers to India to use UPI for their merchant payments while they are in the country. This facility will begin with travellers from the G-20 countries arriving at selected international airports.
In a move to curb inflation and manage liquidity issues in the market, Governor Shaktikanta Das announced that the RBI Monetary Policy Committee (MPC) decided to hike the repo rate by 25 basis points to 6.5 per cent on Wednesday.
The governor described the rate hike as appropriate at the current juncture. "The reduction in the size of the rate hike provides the opportunity to evaluate the effects of the actions taken so far on the inflation outlook and on the economy at large," he added.
When high levels of inflation prevail, the central bank attempts to reduce the flow of money in the economy. One way to do this is by increasing the repo rate. With it, borrowing becomes a costly affair for businesses and industries, which in turn, slows down investment and money supply in the market.
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