Digital payments in the new digital India, already testifying anomalous action since Prime Minister Narendra Modi’s demonetization decision in 2016, is expected to take a big step ahead of the general elections. The government is now watching to make a quick response (QR) code-based payment system utilizing the Unified Payments Interface (UPI) compulsory for all stores and enterprises behind a definite threshold.
The step had been recommended by the GST Council before the Lok Sabha polls began rolling and features of the payment device are currently being pulled out at the finance ministry.
The National Payments Corporation of India (NPCI), a syndicate group for all direct payments in India with 56 member banks, has reportedly been roped in to roll it out everywhere. UPI is a real-time payments method that allows digital transactions within banks without the requirement to input NFSC code and other bank account details. The users need to do is make sure is that their phone number is connected to their bank account(s). NPCI had started BharatQR, an inter-operable QR code system for transactions, built by card networks, in February 2017. It originally covered Visa, MasterCard, and the NPCI’s RuPay, and succeeding American Express as well.
Govt. of India wants more and more B2C payments to be made digitally, and to achieve this, a significant choice has been almost concluded: Every retailer and stores in the Indian market will be asked to present a QR code, by law. That QR code will be connected with UPI based payment device. Hence, a person having any UPI maintained wallet or app can just easily scan the QR code, and make the transaction. The aim here is to empower more and more digital payments and to present incentives for the same.
Government officials are providing examples of China, where such a law was implemented, and constantly, customers had to be taught that they can make transactions via cash as well. In India, with the burst of smartphone mode, and affordable data, necessary QR-code in every store for allowing more digital sales does sound like a great plan. But contemplating that UPI-related and digital scams are rising, there have to be a security protocol to be introduced as well, which makes it fraud-proof.