Page 10 - Banking Finance November 2020

RBI CORNER

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Payment Operators must enable beneficial features identified by "Regulations, standards, dispute reso-
the Phatak Committee, the official lution and enforcement by an SRO get
shift to QR codes by statement read. legitimacy not just by mutual agree-

March 2022 Payment System Operators must take ment of its members, but also by the
RBI has said that the payment opera- initiative to increase awareness about efficiency with which self-regulation is
tors must shift to interoperable Quick interoperable QR codes. The measures perceived to be administered. Such
Response (QR) codes by March 2022. suggested by the Phatak Committee regulations supplement, but do not
"Payment System Operators (PSOs) are expected to reinforce the accep- replace, applicable laws or regula-
that use proprietary QR codes shall tance infrastructure, provide better tions," RBI added.
shift to one or more interoperable QR user convenience due to
codes; the process of migration shall be interoperability and enhance system Indian Economy at door-
completed by March 31, 2022," the efficiency, the bank said. step of revival process
regulator mentioned. RBI also sets the necessary regulatory
A committee led by Professor Deepak framework to ensure that different RBI governor Shaktikanta Das, has said
that the Indian economy, which has
Phatak suggested various measures for types of payment systems operate in been severely affected by the ongoing
moving towards interoperable QR the country. The regulator encouraged coronavirus pandemic, is at the door-
Codes in the next two years. The two the establishment of a Self-Regulatory
step of revival. He added: "We are al-
interoperable QR codes in existence - Organisation (SRO) for Payment Sys-
most at the doorstep of revival process
UPI QR and Bharat QR - shall continue, tems Operators.
and it's very important that the finan-
the committee advised.
An SRO is a non-governmental cial entities have adequate capital (to
QR codes are two-dimensional ma- organisation that sets and enforces support growth)."
chine-readable barcodes, which are rules and standards relating to the
increasingly used to facilitate mobile conduct of member entities in the in-
payments at the point-of-sale. QR dustry, with the aim of protecting the Expressing confidence that the
codes can store a large amount of in- customer and promoting ethical and policymakers will be able to overcome
formation. In India, QR Code Payment professional standards. challenges caused due to Covid, Das
Systems broadly support three differ- "The SRO is expected to resolve dis- said that the government will have to
ent types of QR code payments -- putes among its members internally spell out a fiscal roadmap post-Covid.
Bharat QR, UPI QR, and Proprietary through mutually accepted processes "I think post Covid, once there is con-
QR. to ensure that members operate in a tainment of pandemic, the govern-
The central bank shall continue a con- disciplined environment and even ac- ment will certainly have to spell out a
sultative process to standardise and cept penal actions by the SRO," the fiscal roadmap that India should
improve interoperable QR codes to bank said. adopt," he noted.

10 | 2020 | NOVEMBER | BANKING FINANCE