According to the Reserve Bank of India data, during FY 2018 to 2020, the transaction volume from UPI has increased almost 13 times while its value has increased by 20 times.
RBI has told companies like Phone Pay that now they will not launch their new proprietary QR code. After this step of RBI, now customers can make payments on any platform from any app that supports UPI payment.
The Reserve Bank of India (RBI) has given a tremendous blow to the phone-paying digital platform. Under this, platforms like Paytm, PhonePe, Google Pay, Amazon Pay will no longer be able to use exclusive QR codes. This rule will be applicable to those QR codes, which operate only on the platforms of these companies.
Must shift before 31 March 2022
RBI has said that instead of payment apps, by March 31, 2022, one or more interoperable QR codes will have to be shifted. RBI has stated that no new proprietary QR code will be launched by any PSO for any payment transaction. With this latest step of RBI, now customers can pay on any platform from any app that supports UPI payment.
Plan to promote acceptance infra
This RBI order means that it wants acceptance infrastructure to be promoted in the country. Also, interoperability (ie the facility to operate on a different platform) should be facilitated and work should be done to enhance the system. However, many PSOs have already implemented the interoperable QR code. But there are still a lot of PSOs who are using proprietary QR code for the transaction of payment.
UPI QR and India QR to continue
The Reserve Bank of India has said that UPI QR and Bharat QR will continue. Also, PSOs should also take initiative towards increasing interoperable awareness. RBI said that the process of standardization and improvement of interoperable QR codes should continue continuously. The Reserve Bank had earlier set up a committee to review the current system of QR codes in the country and also suggest steps to be taken in the direction of interoperable QR codes.
UPI payment has increased rapidly
UPI payments have grown rapidly in the country for the last two years. This has especially increased since Prime Minister Narendra Modi started the Digital India Mission. According to the Reserve Bank of India data, during FY 2018 to 2020, the transaction volume from UPI has increased almost 13 times while its value has increased by 20 times. In August this year, NITI Aayog CEO Amitabh Kant had said in a tweet that the transaction from UPI has crossed 18 billion on an annual basis.