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RBI To Launch QR-Based Coin Vending Machines In 12 Cities
Writer: Laxmi Mohan Kumar
She is an aspiring journalist in the process of learning and unlearning many things. Always up for discussions on everything from popular culture to politics.
India, 9 Feb 2023 9:31 AM GMT | Updated 9 Feb 2023 9:53 AM GMT
Editor : Ankita Singh |
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Creatives : Laxmi Mohan Kumar
She is an aspiring journalist in the process of learning and unlearning many things. Always up for discussions on everything from popular culture to politics.
The QR code-based coin vending machines would be made available at public spaces such as railway stations, shopping malls, and marketplaces across 12 cities in the country.
It has become a common practice in India to provide substitutes in the place of coins as the balance payment, as the availability of coins has almost always been low. Resolving this long-term concern, the Reserve Bank of India (RBI) has now announced a pilot project on QR code-based coin vending machines (QCVM) that would be installed across 12 cities in its first phase.
RBI Governor Shaktikanta Das, on February 8, announced that the central bank would launch a CVM that would function based on a QR code. These machines will dispense coins against debit to the customer's account using Unified Payments Interface (UPI). Similar to traditional ATMs in system, these QCVMs would aim to eliminate the need for physical tendering of banknotes and their authentication. It would further improve coin distribution by enhancing access to coins.
The announcement was made while addressing the outcome of the Monetary Policy outcome for the year 2023. Shaktikanta Das informed people that based on the learnings from the pilot, necessary guidelines would be issued to banks to promote the distribution of coins using these machines. Customers would be able to soon see the QCVM's installed at public places such as railway stations, shopping malls, and marketplaces for ease and accessibility.
Reduce Inflation & Money Flow
Additionally, during the announcement, the Governor mentioned a raise in the borrowing costs for corporates and individuals. The repo rate, at which the RBI lends funds to commercial banks, will further be hiked at 25 basis points to 6.5 per cent.
A report by NDTV quoted him saying, "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."
The RBI Monetary Policy Committee (MPC), led by the Governor, stated that the rate hike is considered appropriate at the current juncture. As it is an effective tool in controlling inflation with a reduced flow of money in the economy, the increased repo rate was seen as a much-needed move.
Also Read: Here's All You Need To Know About RBI's New Digital Rupee Pilot For Wholesale Segment
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