Shaktikanta Das, the governor of the RBI, announced on Wednesday that a pilot programme to introduce coin vending machines that use QR codes will begin shortly.
In response to the outcome of the monetary policy for the year 2023, the Central Bank Governor announced that the RBI will introduce a coin vending machine that uses a QR code to improve accessibility to coins. The pilot initiative, according to the governor of the RBI, would be introduced in 12 cities. This will be beneficial, particularly for tier 2 and higher cities where there is less banking presence.
"The Reserve Bank of India will launch a pilot project on QR code-based coin vending machines (QCVM) in 12 cities. These vending machines will dispense coins against a debit to the customer’s account using UPI instead of physical tendering of banknotes. This will enhance the ease of accessibility to coins. Based on the learnings from the pilot, guidelines will be issued to banks to promote distribution of coins using these machines," Governor Das said while announcing the Monetary Policy review.
According to the RBI document, the QR Code-Based Vending Machine will do away with the necessity for actual tendering of banknotes and their authentication. This is in contrast to traditional cash-based coin vending machines. Customers will also be able to withdraw coins from QCVMs in the necessary quantities and denominations.
"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, 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," said the RBI document.
RBI increased the Repo Rate by 25 basis
The RBI Monetary Policy Committee, chaired by Governor Shaktikanta Das, increased the Repo Rate by 25 basis points to 6.5 percent on Wednesday. This increase would result in higher borrowing costs for businesses and people.
The Reserve Bank of India charges a repo rate when lending money to commercial banks. The central bank employs it as a tool to manage inflation. In an effort to reduce inflationary pressure, this is the third increase since the start of the current fiscal year, returning the rate to pre-pandemic levels.
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