A recent news development indicates that the Reserve Bank of India (RBI) is preparing to launch a pilot project designed to evaluate the performance and utility of a QR-code Based Coin Vending Machine (QCVM). The pilot phase is set for an initial rollout across 19 locations in 12 cities throughout the nation. The targeted venues for installing these machines include public sites such as railway stations, shopping malls, and marketplaces, as part of the efforts to improve ease of access to coins.
About QCVM
The QR-code Based Coin Vending Machine, or QCVM, is a cutting-edge, cashless coin dispenser that issues coins in exchange for a debit from the user’s bank account via the Unified Payment Interface (UPI). Unlike traditional, cash-dependent vending machines, the QCVM eliminates the need for paper money and its validation. The machines are aimed at allowing users to withdraw coins in the quantities and denominations they require, thereby making coins more readily available and enhancing their accessibility.
Why QCVM?
The new QCVM comes as a response to multiple issues presented by conventional coin machines. Earlier units were prone to counterfeits, with false currencies often being used to exploit the system. Additionally, despite the high supply of coins, their distribution has been less than optimal, hence the introduction of QCVM aims to effectively address these problems.
The Current Coin Circulation Scenario in India
As stated in the latest RBI bulletin, the overall circulation of rupee coins in India was worth Rs 28,857 crore as of December 30, 2022. This represents a year-on-year increase of 7.2%. To give context, Indian coins are issued in denominations ranging from 50 paise to twenty rupees, with coins valued up to 50 paise being termed ‘small coins’ while those valued at one rupee and above are referred to as ‘rupee coins’.
How QCVM Can Improve Coin Distribution
A key issue with the current coin distribution approach is that it requires a person to visit a bank branch to exchange currency notes for coins. The QCVM machines, on the other hand, will allow users to withdraw coins simply by scanning a UPI QR code. The corresponding coin amount will then be debited from their bank account. By facilitating the availability of coins in areas with high demand, QCVM should help ensure a more balanced and efficient absorption of supply.
Last Modified: February 20, 2024