RBI’s new pilot project on coin vending machines
Why in news :
- RBI Governor had stated during the last Monetary Policy Committee (MPC) address that the apex banking regulator, in collaboration with banks, would be launching a pilot project to assess the functioning of a QR-code based coin vending machine.
- The pilot is initially planned to be rolled out at 19 locations in 12 cities across the country.
- 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.
About the Project :
- In simple words, 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.
- The proposed mechanism for coin dispensation would be a departure from the conventional machines which relied on banknotes for facilitating coin exchanges.
- Further, the proposed machine would eliminate the need for physical tendering of banknotes and their authentication.
- It was observed that the currency being fed into the machines (for coin exchange) were often found to be fake and could not be checked right at that point of time.
- Thus, the mandate to eliminate the physical tendering of banknotes.
- Coins of up to 50 paise are called ‘small coins’ while those of one rupee and above are called ‘rupee coins’.
Syllabus : Prelims + Mains; GS3-Indian Economy
