Published on: March 2, 2023
Coin vending machines
Why in news? RBI in collaboration with banks, would be launching a pilot project to assess the functioning of a QR-code based coin vending machine.
What is the project about?
- The vending machines would dispense coins with the requisite amount being debited from the customer’s account using United Payments Interface (UPI) instead of physical tendering of banknotes.
- 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.
- Proposed machine would eliminate the need for physical tendering of banknotes and their authentication
- With particular focus on ease and accessibility, the machines are intended to be installed at public places such as railway stations, shopping mall and marketplaces.
- Coins in India are issued in denominations of 50 paise, one rupee, two rupees, five rupees, ten rupees and twenty rupees.
- Coins of up to 50 paise are called ‘small coins’ while those of one rupee and above are called ‘rupee coins’.
- The total value of circulation of rupee is at increase of 7.2% from the year-ago period and circulation of small coins remained unchanged
- It must be recalled that the payments interface for feature phones and apex regulator is also in the midst of a pilot for the Central Bank Digital Currency (CBDC).