RBI Bans Starting Of New QR Code By Point Of Sale

RBI bans the starting of the new QR code by point of sale. The RBI (Reserve Bank of India) bans the introduction of a new proprietary QR (Quick Response) code for payment transactions by payment system operators (PSOs).

Currently, two interoperable (interoperable) QR codes UPI QR and Bharat QR are operational. Along with this, the Reserve Bank has issued the final guidelines regarding the establishment of a self-regulatory organization for PSOs.

QR codes are two-dimension machine-readable barcodes.

They are used for payment via mobile at point of sale (POS). QR codes can contain a large amount of information.

The central bank had constituted a committee to review the existing system of codes in India under the chairmanship of Deepak Phatak.

The committee was to suggest measures to move towards interoperable QR codes. The decision to proceed with the two existing Quick Response (QR) codes has been taken based on the recommendations of the committee.

The Reserve Bank said that the UPI QR and India QR codes will continue for the present. The notification states that proprietary QR code users will move to one or more interoperable or interoperable QR codes.

This transfer process should be completed by March 31, 2022. With this, the Reserve Bank said that no PSO will introduce any new proprietary code for any payment transaction.

Meanwhile, the Reserve Bank has issued final guidelines regarding the establishment of a self-regulatory organization for payment system operators (PSOs).

It also includes a framework related to the self-regulatory organization. Through this framework, the central bank will be able to recognize Self-Regulatory Organizations (SROs) for PSOs.

The plan was announced in the February-2020 Monetary Review.

A circular of the Reserve Bank states that the groups/associations (PSBs as well as non-banks) of PSOs desirous of being recognized as SROs can apply to the Chief General Manager of the Payment and Settlement Systems Department of the Reserve Bank.