May 23, 2024
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RBI Proposes To Launch Code-Based Coin Vending Machine In 12 Cities

Shaktikanta Das, the governor of the Reserve Bank of India, announced on Wednesday that the institution would begin a pilot programme for QR code-based coin vending machines (QCVM) in 12 cities across the nation. Instead of physically presenting banknotes, these vending machines will issue coins in exchange for a debit to the customer’s account utilising the Unified Payments Interface (UPI).

In response to the conclusion of the Monetary Policy for the year 2023, the governor of the central bank announced that the RBI would introduce the QR code-based coin vending machine to improve accessibility to coins.

The RBI Monetary Policy Committee (MPC), headed by Governor Shaktikanta Das, increased the repo rate by 25 basis points to 6.5 percent on Wednesday, significantly increasing borrowing costs for businesses and consumers.

The governor believes that at this time, a rate increase of 25 basis points is reasonable. The chance to assess the consequences of the steps taken thus far on the inflation forecast and the overall economy is provided by the reduction in the size of the rate hike, he continued.The central bank tries to stop the flow of money into the economy when there is high inflation. Increasing the repo rate is one method of achieving this. It makes financing expensive for firms and industries, which in turn slows down investment and the availability of money on the market.

Picture Courtesy: Google/images are subject to copyright

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