RBI’s new pilot project on coin vending machines: During the most recent Monetary Policy Committee (MPC) address, RBI Governor Shaktikanta Das stated that the apex banking regulator, in collaboration with banks, would launch a pilot project to evaluate the operation of a QR-code based coin vending machine.
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More about the project:
- Instead of physically tendering banknotes, the vending machines would dispense coins, with the appropriate amount debited from the customer’s account via the United Payments Interface (UPI).
- Customers would be able to withdraw coins in the desired quantities and denominations.
- The central concept here is to make coins more accessible.
About Coin Vending Machines:
Instead of physically tendering banknotes, the vending machines would dispense coins, with the appropriate amount debited from the customer’s account via United Payments Interface (UPI). Customers would be endowed the option of withdrawing coins in required quantities and denominations. The central idea here is to ease the accessibility to coins. With particular focus on ease and accessibility, the machines are intended to be installed at public places such as railway stations, shopping malls and marketplaces.
Where will coin vending machines be launched:
The pilot project will initially be implemented in 19 locations across the country in 12 cities. These vending machines are intended to be installed at public places such as railway stations, shopping malls, and marketplaces to enhance ease and accessibility.
Indian Economy: recent status of coins:
- Circulation of Coins: As of December 30, last year, the total value of circulation of rupee coins was Rs.28,857 crore. The figure is an increase of 7.2% from the previous year.
- The circulation of small coins remained constant at Rs.743 crore. Coins in India are issued in denominations of one rupee, two rupees, five rupees, ten rupees, and twenty rupees.
- Volume of digital payments: According to the Digidhan Dashboard, the volume of digital payments is expected to be around Rs.9,557.4 crore until December 2022. The number includes mobile banking, internet banking, IMPS, BHIM-UPI, and NEFT, among other services.