In a bid to make UPI (Unified Payment Interface) more ordered and consistent for all merchants transactions and peer to peer money transfers, Govt of India has made a major announcement related to the using of BharatQR code for all UPI apps. UIDAI (Unique Identification Authority of India) has made a target of 1 billion UPI transactions by the end of this year.
With this new move, UIDAI has made a target of 1 billion UPI based transactions by the end of this year
Bharat QR Code Mandatory for All UPI Bank Apps
NPCI (National Payments Corporation of India (NPCI) who is leading the UPI movement in India has made it mandatory for all UPI apps by banks to give support for BharatQR code via their app. If they fail to follow the order, the UPI platform facilities for money transfer can be stripped as well. In a notification, they mentioned April 16 as a deadline. The notification read
PSP banks must decline such transactions from non-complaint BHIM UPI apps after April 16, 2018, proactively
Three major changes are announced by NPCI related to the UPI payments via UPI apps of the respective banks:
- All the UPI apps should permit fund transfer using any UPI payment address.
- Respond to collect request from other UPI addresses
- Generate as well as scan Bharat QR and UPI QR codes
In order to ensure that customers using merchant UPI apps can still use those apps to make payment at retail offline merchant outlets, NPCI has mandated even if merchant apps cannot generate Bharat QR codes they should be able to scan it.
The private Merchant Apps like Paytm, Amazon Pay, PhonePe and others who are using the UPI platform are not under this rule. Only the official UPI apps of the banks are mandated to follow this rule. As a note Paytm has recently become the biggest UPI platform.
Reaching 1 Billion UPI Transactions
Nandan Nilekan, former UIDAI (Unique Identification Authority of India) chairman has set a target of 1 billion UPI transactions by this December 2018. At a press conference organised by Kotak Mahindra Bank, Nilekan predicted that UPI transactions would increase and will go on to become the biggest cashless platform in the upcoming days. He said
There’s Paytm, there’s PhonePe, there’s Google, there’s WhatsApp, and so you’re seeing a dramatic shift in the way payment is being done.
Nilekan also expressed confidence over the futuristic features of UPI 2.0, the vision of which was unveiled earlier this year. The Bharat QR was launched by NPCI in collaboration with MasterCard, Visa and American Express over a year ago, but it is yet to get mainstream. Industry Insiders predict the incorporation of Bharat QR for UPI payments may increase the user base.
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