RBI also announced that all inbound travelers to India will allowed to use the UPI system for their merchant payments, starting with those arriving from G-20 countries.
Shaktikanta Das, governor of the Reserve Bank of India (RBI), revealed a pilot project on Wednesday in his speech on monetary policy, in which coin vending machines based on QR codes will introduced, allowing users to withdraw coins via UPI payments rather than physically tendering banknotes. According to Das, the project will introduced in 12 cities and intended to help regular people.
“This will enhance the ease of accessibility to coins. Based on the learnings from the pilot, guidelines 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 travelers to India will allowed to use the 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 percent. Meanwhile, the committee projected India’s real GDP growth to be at 6.4 percent for the next financial year.
The governor believes that at this time, a rate increase of 25 basis points is appropriate. He stated: “The opportunity to assess the effects of the actions taken so far on the inflation outlook and the economy at large is provided by the reduction in the size of the rate hike.”
The average retail inflation rate in India anticipated to 5.3 during the years 2023–2024, according to Das. While inflation predicted to moderate in 2023–2024, it is still likely to exceed the target of 4%, according to him.