Page 52 - Banking Finance November 2020

RBI CIRCULAR

RBI

CIRCULAR

Digital Payment Transactions – 3. The above measures are expected to reinforce the
acceptance infrastructure, provide better user
Streamlining QR Code infrastructure
convenience due to interoperability and enhance
RBI/2020-21/59 system efficiency.
October 22, 2020 4. This directive is issued under Section 10 (2) read with
Section 18 of the Payment and Settlement Systems Act,
1. As you are aware, Reserve Bank had constituted a 2007 (Act 51 of 2007).
Committee (Chairperson : Prof Deepak Phatak) to
review the current system of Quick Response (QR) (P. Vasudevan)
Codes in India and suggest measures for moving Chief General Manager
towards interoperable QR Codes. The report of the
Committee containing various recommendations was
placed on the Reserve Bank website for public Review of regulatory framework for
comments and feedback. Housing Finance Companies (HFCs)
2. After examining the recommendations and the
RBI/2020-21/60
feedback received, the following has been decided:
October 22, 2020
i) The two interoperable QR codes in existence – UPI
QR and Bharat QR – shall continue as at present.
1. Please refer to the Bank’s Press Release No.2019-20/419
ii) Payment System Operators (PSOs) that use
dated August 13, 2019 and draft regulatory framework
proprietary QR codes shall shift to one or more
placed in public domain on June 17, 2020 seeking
interoperable QR codes; the process of migration
comments from stakeholders. Based on the examination
shall be completed by March 31, 2022.
of the inputs received, it has been decided to issue the
iii) No new proprietary QR codes shall henceforth be revised regulatory framework for HFCs.
launched by any PSO for any payment transaction.
2. In exercise of powers conferred under National Housing
iv) RBI shall continue a consultative process to Bank Act, 1987, and Reserve Bank of India Act, 1934,
standardise and improve interoperable QR codes, and in supersession of relevant regulations issued by
to enable beneficial features identified by the National Housing Bank (NHB), the instructions as
Phatak Committee. enumerated in the Annex will be applicable to all HFCs.
v) PSOs may take initiative to increase awareness HFCs shall continue to comply with all extant instructions
about interoperable QR codes. issued by NHB, which are not covered in the Annex.

52 | 2020 | NOVEMBER | BANKING FINANCE