Why in news? The Reserve Bank of India (RBI) is preparing to initiate a test program to evaluate the performance of a QR-code Based Coin Vending Machine (QCVM). Initially, the trial will be conducted at 19 different sites located in 12 cities throughout the nation.
These machines are designed to be easily accessible and user-friendly, and are expected to be situated at public locations such as shopping malls, marketplaces, and railway stations.
What is QCVM?
QCVM stands for “QR-code Based Coin Vending Machine”. It is a type of vending machine that dispenses coins after scanning a QR code. The Reserve Bank of India (RBI) is planning to launch a pilot project to test the functioning of such machines.
What is the Need QCVM?
The QCVM, or QR-code Based Coin Vending Machine, is being introduced as a means of increasing the availability and accessibility of coins for the public. The Reserve Bank of India (RBI) has identified that there is a shortage of coins in circulation across the country.
The introduction of QCVMs is expected to help address this issue by making it easier for people to access coins, particularly in public places such as railway stations, shopping malls, and marketplaces.
The QCVMs are designed to be user-friendly and convenient, allowing people to obtain the coins they need quickly and easily.
According to the latest bulletin by the Reserve Bank of India (RBI), the total value of rupee coins in circulation amounted to Rs. 28,857 crore as of December 30, 2022, indicating a 7.2% increase from the previous year.
Coins are issued in denominations of 50 paise, one rupee, two rupees, five rupees, ten rupees, and twenty rupees in India, with small coins up to 50 paise and rupee coins of one rupee and above. By making coins available at locations with high demand, the supply can be absorbed.
Currently, coins can only be obtained by exchanging currency notes at bank branches, but with QCVM, coins can be withdrawn using a UPI QR code and debited from the user’s bank account.