MUMBAI: The Reserve Bank of India on Thursday banned tariff system operators (PSOs) from launching any new proprietary QR code for tariff transactions.
Currently, there are two executable QR codes, UPI QR and Bharat QR.
QR codes are two-dimensional machine-readable barcodes that are used to facilitate mobile payments during sales. QR codes can store large amounts of information.
The decision to proceed with the two existing Quick Response (QR) codes is to review the current system of such codes in India based on the recommendations of a panel set up by the Reserve Bank headed by Deepak Patak and recommend appropriate measures. Moving towards executable QR codes.
UPI QR and Bharat QR will continue at present, the central bank said in a statement.
“PSOs that use proprietary QR codes will switch to one or more executable QR codes; the relocation process will be completed by March 31, 2022,” it added.
Furthermore, the Reserve Bank has stated that no proprietary QR codes will be initiated by any PSO for any fee transaction.
The central bank will pursue an advisory process to standardize and improve executable QR codes, and may take the initiative to raise awareness about executable QR codes, according to the announcement, to implement the beneficial features identified by the FDC Committee and PSOs.
The RBI said the results would strengthen the acceptable infrastructure, provide better user convenience due to its functionality and improve system performance.
The Japanese company Tenzo Wave invented the QR code in the 1990s.
In India, QR code payment systems widely support three different types of QR code payments: Bharath QR, UPI QR and proprietary QR.