QR based coin vending machines soon; here’s how it will use UPI, bank account balance to dispense money

RBI MPC Updates: RBI Guv Shaktikanta Das announced vending machines will dispense coins against debit to the customer’s account using UPI.

QR Code based coin machines
The new machines will seek to increase the supply of coins in circulation.

RBI MPC Meet 2023 Live: The RBI Governor Shaktikanta Das announced the advent of a new facility, the ability to use UPI at coin vending machines instead of tendering physical banknotes. “These vending machines will dispense coins against debit to the customer’s account using UPI instead of physical tendering of banknotes. This will enhance the ease of accessibility to coins,” said the RBI Governor following the RBI MPC meeting.

Coin vending machines allow the exchange of bank notes into coins, thus increasing the circulation. “Based on the learnings from the pilot, guidelines will be issued to banks to promote distribution of coins using these machines,” RBI Guv Das added.

The Reserve Bank of India hiked its key repo rate by 25 basis points on Wednesday as expected but surprised markets by leaving the door open to more tightening, saying core inflation remained high. The central bank said that its policy stance remains focused on the withdrawal of accommodation, with four out of six members voting in favour of that position. Most analysts had expected a hike on Wednesday to be the final increase in the RBI’s current tightening cycle, which has seen it raise rates by 250 bps since May last year.

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First published on: 08-02-2023 at 11:10 IST