RBI to launch QR based coin vending machine: How does it work? What are major benefits

New Delhi, Feb 08: The Reserve Bank of India is set to launch a pilot project on QR code-based coin vending machine. These machines will be launched with an aim to promote distribution of coins, and enhance the accessibility to coins.

The initiative will benefit tier 2 and beyond cities with a minimal banking footprint.

"The Reserve Bank of India will launch a pilot project on QR Code based Coin Vending Machine (QCVM) in 12 cities. 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. Based on the learnings from the pilot, guidelines will be issued to banks to promote distribution of coins using these machines," the RBI said in a statement.

"UPI has become hugely popular for retail digital payments in India. It is now proposed to permit all inbound travellers to India to use UPI for their merchant payments (P2M) while they are in the country, the RBI said.

To begin with, this facility will be extended to travellers from G-20 countries arriving at select international airports.

QR based coin vending machine: How will this work?

"A QR code-based coin vending machine is a machine that dispenses coins in exchange for payment through scanning a QR code. The customer generates a QR code through a mobile app or online platform, which contains the payment information, a serach on Chat GTP says.

"The machine scans the QR code, verifies the payment, and releases the desired amount of coins. This system allows for a quick, convenient, and contactless transaction, making it a popular option for vending machine operators," it added.

Benefits of a QR code-based coin vending machine include:

Contactless transactions: QR code-based coin vending machine reduces the need for physical contact with the machine and the risk of cross-contamination.

Simple and easy: QR code-based payments are quick and can be easily accessed by simply scanning a QR code with their mobile device, eliminating the need to carry cash or coins.

Increased efficiency: The machines can process payments faster and more efficiently compared to traditional coin vending machines that rely on cash and coins.

Enhances security: QR code-based coin vending machines increases the security as payment information is stored securely on a mobile device or online platform, rather than in a physical machine. There is less chance of theft or fraud in this case.

Data collection: QR code-based coin vending machines helps in data collection on customer behavior and preferences, which can be used for targeted marketing and product development.

Cost effective: It eliminates the need for frequent coin replenishment and cash handling, reducing operational costs for the vending machine operator.