RBI bars payment firms from issuing new proprietary QR codes

Currently, the easiest way to make digital payments is the QR code, the Reserve Bank of India (RBI) has issued an order. This RBI order will make QR payment easier, understand how easy it will be for you.

New Delhi: Reserve Bank of India (RBI) has prepared a draft to make it necessary for payment companies to use the Interoperable QR Code. This draft has prepared to promote digital and secure transactions in the country.

RBI order on QR code

According to the new guidelines of the Reserve Bank, ‘payment system operators will have to shift to a QR Code system that can be scanned by other payment operators as well. The deadline for implementing this system has set as 31 March 2022. The Reserve Bank says that to spread awareness about interoperable QR codes, payment system operators have to start. Due to interoperability, common people will be comfortable and the payment system will also be better than before.

RBI has also prepared a regulatory framework for this so that different payment systems can be operated in the country. Currently, there are three types of QR codes Bharat QR, UPI QR, and proprietary QR code in the country. RBI says that UPI QR and Bharat QR will continue as before, as these are both interoperable QR codes. But payment system operators will no longer be able to issue new proprietary QR codes. Operators have also asked to spread awareness about people with interoperable QR codes.

Committee suggestions on QR Code

RBI had formed a committee headed by Professor Deepak Pathak to suggest changes in interoperable QR codes. This committee has submitted the report of the suggestion of change to the RBI. This committee set up to analyze the QR Code has said that ‘the government should also introduce incentive schemes to promote transactions through the QR Code in the country and make it attractive among the people’. In this report submit to RBI, it is says that paper-based QR code is very cheap and low cost. It also does not require much maintenance.

Will QR Code Payments Really Matter

Now here, let’s understand how much this RBI order will have on the QR payment system. At this time any Paytm user can easily pay from the QR code of any other company like PhonePe, Google Pay, BharatPe. Other similar companies also receive payments from each other’s QR codes. Because Paytm PhonePe has already launched interoperable QR code before the RBI order.

PhonePe started the facility of interoperable QR code only in September 2019, while Paytm started this service in January this year. Hence, industry experts believe that this order of RBI will not see much difference, because Paytm, PhonePe, and Google Pay have already stopped proprietary QR codes.

When did the QR Code come

In the year 1990, a Japanese company Denso Wave invented the Quick Response (QR Code). QR code is a type of barcode that is read through the machine. QR code can collect and keep many types of information in itself. QR code payment system is being used quite a lot in India.
Through this code, payments can be made easily from mobile at sales centers and shops. Electricity, water, petrol, diesel, grocery items, travel, and many other payments can be made through the QR cord.

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