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 8th February. 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.