Coins are currently mostly distributed through the counters at every bank branch. Recently, other initiatives have been made, including improved incentives for banks to distribute coins, the usage of mobile coin vans with an emphasis on sub-urban, rural, and distant locations, and the holding of coin melas by currency chest branches, according to the RBI Annual report 2022-23.
The Reserve Bank of India in its Annual Report 2022-23 stated: “To further improve distribution of coins by harnessing technology, the Reserve Bank has launched a pilot project on QCVM in collaboration with five banks (viz., Axis Bank, Bank of Baroda, ICICI Bank, State Bank of India and Federal Bank).”
The pilot project is being initially rolled out at 19 locations in 12 cities across the country (viz., Ahmedabad, Baroda, Bengaluru, Chennai, Hyderabad, Kanpur, Kolkata, Mumbai, New Delhi, Patna, Prayagraj and Kozhikode).
What is QR Code-based Coin Vending Machine (QCVM)
The QCVM is a cashless coin dispensation system which allows payment transactions through UPI on scanning a dynamic QR code generated by the machine on the mobile phone of the customer.
How is it different from cash-based traditional coin vending machines
Unlike traditional cash-based coin vending machines, the QCVM does not require actual tendering of banknotes or subsequent authentication of those notes. Additionally, customers will have the opportunity to withdraw coins from QCVMs in the desired number and denominations.
The Government of India has the exclusive right to produce/mint coins, including the “1 note,” in accordance with the Coinage Act, 2011. These coins are issued for circulation only through the Reserve Bank in terms of Section 38 of the RBI Act, 1934.