RBI to launch pilot project for coin vending machines using UPI in 12 cities

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Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday (February 8) said that the apex bank will start a pilot project to launch QR code-based coin vending machines (QCVM) in a bid to enhance ease of access to coins. The pilot will begin in 12 cities.

“This will enhance the ease of accessibility to coins. Based on the learnings from the pilot, guidelines will be issued to banks to promote the distribution of coins using these machines,” the governor said.

Rajsri Rengan, Head of Banking and Payments, India and Philippines, FIS, said that the QR code-based pilot will have ready access to coins for customers via UPI facility and the move by the RBI “is a strategic decision which will benefit the Indian payments landscape.”

QR-based coin vending machine
The RBI will launch a pilot on (QCVM) in 12 cities, however, there is no information about which cities are chosen for the project. These vending machines will dispense coins against debit to the customer’s account and use UPI instead of physical tendering of banknotes.

He also said that UPI has become a hugely-popular retail digital payments system in India. UPI was launched in India in 2016.

UPI in India
According to the data released by the National Payments Corporation of India (NPCI) last month, the UPI recorded over 7.82 billion transactions worth Rs 12.82 trillion in December 2022, which is a new record.

In terms of transaction volume, UPI witnessed exponential growth from 0.02 billion in FY17 to 60 billion until December of this fiscal year. Similarly, the value of transactions spiked from Rs 0.1 trillion to as much as Rs 100 trillion during this period.

UPI for foreigners
The RBI also announced that it will permit all inbound travellers to use UPI payments for their merchant payments while they are in the country. Initially, this facility will be extended to travellers from G20 countries arriving at select international airports, the governor said.

Source – https://www.gadgetsnow.com/tech-news/rbi-to-launch-pilot-project-for-coin-vending-machines-using-upi-in-12-cities/articleshow/97734103.cms

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