RBI announces pilot for QR code-based Coin Vending Machine

• To improve the distribution of coins among members of the public, the Reserve Bank of India (RBI) is preparing a pilot project on QR code-based Coin Vending Machine (QCVM) in collaboration with a few leading banks.

QR code-based Coin Vending Machine (QCVM)

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

When will it be launched?

• The pilot project is planned to be initially rolled out at 19 locations in 12 cities across the country.
• Machines will be installed at public places such as railway stations, shopping malls, marketplaces to enhance ease and accessibility.
• Based on the learnings from the pilot tests, guidelines would be issued to banks to promote better distribution of coins using QCVMs.

Prelims Take Away

• QCVM