**Summary:**
On October 22, 2020, the Reserve Bank of India (RBI) issued a directive (DPSS.CO.PD.No. 4970/02.14.003/2020-21) outlining measures to streamline Quick Response (QR) code infrastructure for digital payment transactions. This directive follows a review of existing QR code systems by a committee led by Prof. Deepak Phatak, and incorporates public comments and feedback received on the committee's recommendations.
The key decisions outlined in the directive are: (i) the continuation of the existing interoperable QR codes, UPI QR and Bharat QR; (ii) a mandate for Payment System Operators (PSOs) utilizing proprietary QR codes to migrate to one or more interoperable QR codes by March 31, 2022; (iii) a prohibition on the launch of any new proprietary QR codes by PSOs for payment transactions; (iv) the RBI's commitment to a consultative process for standardizing and improving interoperable QR codes; and (v) encouragement for PSOs to raise awareness of interoperable QR codes.
These measures aim to strengthen the payment acceptance infrastructure, improve user convenience through interoperability, and enhance overall system efficiency.
This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
For further information, contact P. Vasudevan, Chief General Manager, Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400001. Phone: 91-22-2264 4995; Fax: 91-22-2269 1557; Email: cgmdpsscorbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, also referred to as RBI.
Digital Payment Transactions: Refers to the transactions made through digital payment methods and systems.
QR Code: Quick Response Code, a type of matrix barcode that is machine-readable and contains information about the item to which it is attached.
Prof Deepak Phatak: Chairperson of the Committee constituted by the Reserve Bank of India to review QR Codes.
UPI QR: Unified Payments Interface Quick Response code, one of the two interoperable QR codes in existence.
Bharat QR: One of the two interoperable QR codes in existence in India.
Payment System Operators: Entities authorized to operate payment systems.
Payment and Settlement Systems Act, 2007: An Act of the Indian Parliament that provides for the regulation and supervision of payment systems in India.
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2020-21/59
DPSS.CO.PD.No.497/02.14.003/2020-21 October 22, 2020
The Chairman / Managing Director / Chief Executive Officer
Authorised Payment System Operators (Banks and Non-banks)
Madam / Dear Sir,
Digital Payment Transactions – Streamlining QR Code infrastructure
As you are aware, Reserve Bank had constituted a Committee (Chairperson : Prof Deepak Phatak)
to review the current system of Quick Response (QR) Codes in India and suggest measures for
moving towards interoperable QR Codes. The report of the Committee containing various
recommendations was placed on the Reserve Bank website for public comments and feedback.
2. After examining the recommendations and the feedback received, the following has been
decided :
i. The two interoperable QR codes in existence – UPI QR and Bharat QR – shall continue as
at present.
ii. Payment System Operators (PSOs) that use proprietary QR codes shall shift to one or more
interoperable QR codes; the process of migration shall be completed by March 31, 2022.
iii. No new proprietary QR codes shall henceforth be launched by any PSO for any payment
transaction.
iv. RBI shall continue a consultative process to standardise and improve interoperable QR
codes, to enable beneficial features identified by the Phatak Committee.
v. PSOs may take initiative to increase awareness about interoperable QR codes.
3. The above measures are expected to reinforce the acceptance infrastructure, provide
better user convenience due to interoperability and enhance system efficiency.
4. This directive is issued under Section 10 (2) read with Section 18 of the Payment and
Settlement Systems Act, 2007 (Act 51 of 2007).
Yours faithfully,
(P. Vasudevan)
Chief General Manager
भुगतान और िनपटान �णाली िवभाग, क��ीयकायार्लय, 14वीमंिजल, क��ीयकायार्लयभवन,शहीदभगत�संहमागर्, फोट,र् मुम्बई - 400001
फोनTel: (91-22) 2264 4995; फैक् सFax: (91-22) 22691557; ई-मेलe-mail : cgmdpssco@rbi.org.in
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, ShahidBhagat Singh Road, Fort, Mumbai - 400001
�हदं ी आसानह,ै इसका�योगबढ़ाइए