BENGALURU: In order to push QR code transactions at merchant outlets and drive retail offline payments digital, the National Payments Corporation of India (NCPI) has mandated that every UPI application should be able to scan Bharat QR codes and respond to merchants’ payment requests.
In a notification released last Friday, the payment network, which manages the UPI railroads, said that all banks running UPI applications need to adhere to such guidelines by April 16, failing which ‘transactions might be declined for non-compliance’.“PSP banks must decline such transactions from non-compliant BHIM UPI apps after April 16, 2018 proactively,” read the circular from NPCI.
Among the mandatory features that need to be brought in, the circular said that all UPI apps should allow fund transfer using any UPI payment address, respond to collect request from other UPI addresses and even generate as well as scan Bharat QR and UPI QR codes.Read more ↓
While Bharat QR was launched with much fanfare by NPCI in collaboration with Mastercard, Visa and American Express, it has been more than a year but still it has not picked up significantly. A move to incorporate Bharat QR for UPI payments could push up volumes, say industry insiders.
“In order to ensure that consumers using merchant UPI apps can still use those apps to make payments at retail offline merchant outlets NPCI has mandated even if merchant apps cannot generate Bharat QR codes they should be able to scan such codes,” said one of them quoted above.
Merchant apps like Amazon Pay and others have been otherwise kept out of the mandate since they might not want to push UPI for peer-to-peer transactions, said bankers in the know of the matter.