In his monetary policy address, Reserve Bank of India (RBI) governor Shaktikanta Das on Wednesday announced a pilot project wherein a QR code-based coin vending machine will be launched for customers to draw coins through UPI payment instead of physical tendering of banknotes. The project will be launched in 12 cities and aims to benefit the common people, Das said.
“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 Governor said in his speech.
The currency regulating body also announced that all inbound travellers to India will be allowed to use UPI system for their merchant payments, starting with those arriving from G-20 countries.
UPI payments system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.
The Shaktikanta Das-led RBI monetary policy committee today hiked the repo rate by 25 basis points to 6.5 per cent. Meanwhile, the committee projected India’s real GDP growth to be at 6.4 per cent for the next financial year.
According to the governor, a rate hike of 25 basis points is considered as appropriate at the current juncture. “The reduction in the size of the rate hike provides the opportunity to evaluate the effects of the actions taken so far on the inflation outlook and on the economy at large,” he noted.
Das also said that the average retail inflation in India is projected to be at 5.3 during 2023-24. While inflation is expected to moderate in 2023-24, it is likely to rule above the 4 per cent target, he said.