RBI to launch pilot project for QR-code based coin vending machines

The RBI is preparing a pilot project on QR code-based Coin Vending Machine (QCVM) in collaboration with a few leading banks to improve distribution of coins among the public, said the central bank in its Statement on Developmental and Regulatory Policies.

The QCVM is a cashless coin dispensation machine, which will dispense coins against a debit to the customer’s bank account using Unified Payments Interface (UPI) and eliminate the need for physical tendering of banknotes and their authentication. Customers will also have the option to withdraw coins in required quantity and denominations in QCVMs, said the central bank.

“Coins we have a peculiar situation where the supply is very high, it’s taking up a lot of storage space and it’s not getting properly distributed, but at the same time there is demand in pockets. So, one way of increasing absorption of coins into the system is to make coins available in places where there is demand,” said Deputy Governor T Rabi Sankar.