Feeding Of Fake Notes In Coin Vending Machines Led To UPI-Based Alternative: RBI
The Reserve Bank announced the alternative based on the unified payment system as a result of finding counterfeit currency notes in coin vending machines, according to Deputy Governor T Rabi Sankar on Wednesday.
The challenge of counterfeit notes, according to Sankar, forced the RBI to establish coin vending machines in places like vegetable markets where there is a large demand for coinage.
“The problem then was that the currency that was being fed into these machines was found to be very often fake… so that became an issue,” he told reporters at the central bank headquarters here.
The RBI began considering alternatives at this point, according to Sankar, who also noted that many people use smartphones that can scan a QR code that is connected to the unified payments interface to initiate and complete a transaction without the usage of cash.
According to Sankar, the machine was created in-house, and a pilot project that was started is now being expanded. He also stated the recently revealed initiative will enhance how coins are distributed throughout the system.
Governor Shaktikanta Das had earlier in the day unveiled the “QR Code based Coin Vending Machine- Pilot project.” According to him, the trial project would first be implemented at 19 venues in 12 cities around the nation, including market areas, malls, and train stations.
According to Sankar, the RBI is struggling with a particular issue where there is an excessive amount of coin supply that requires a lot of storage space, is improperly dispersed, and leaves many locations short on coins. According to Deputy Governor Rajeshwar Rao, supervisory reviews have shown that there are inconsistent procedures and, in some instances, excessive practises. As a result, draught guidelines on punitive charges on interest have been released.
Picture Courtesy: Google/images are subject to copyright