Vending

India’s QR-enabled coin vending machine: Pros and cons

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February 15, 2023

The recently-reported QR-code enabled coin vending machine in India drew the attention of a business journalist who considered the pros and cons of the unusual concept.

Hamsini Karthik, a senior editor at The Hindu Busines Line, noted in an opinion piece that the QR-code based machine introduced by the Reserve Bank of India is similar to an ATM except that it dispenses coins rather than bills.

The central bank's plan is to remove the need to tend notes in exchange for coins, thereby saving time for both the bank branch and the customer. The QR code will enable users to withdraw coins using the country's Unified Payments Interface in the machine, by which the value of coins withdrawn will be debited from the user's bank account.

Vendors and customers that rely on coins will find the machines useful, Karthik acknowledged.

Banks will, however, need to replenish the machines regularly, possibly adding costs.

Karthik further claimed the concept is counterproductive to the e-Rupee, launched in December 2022, which is intended to reduce the minting/printing cost of currency and replace physical currencies with digital currencies.