Yesterday, in a small event, RBI introduced BharatQR, a new payment system for India. This app will use QR code (quick response code) to make payments. This will be similar to scanning a Paytm QR code at a shop near you.
You might ask “why bring in a new system if we already have one in practice?”
The answer is, till now different networks offer different QR codes. The QR code from paytm wont be the same as the QR code from a UPI app. RBI wants to avoid this with BharatQR.
This would be very useful for small merchants who does not have a POS or acard swiping machine.
So far, a total of 15 banks have signed up for the BharatQR initiative. The QR codes generated by BharatQR can be used across all the partner banks. The merchant or the customer does not have to go through the pain of using different QR codes for payment.
There won’t be a separate app for BharatQR (enough with the money apps man!), instead the feature will be part of the mobile banking app. You will soon have to update your bank’s mobile app to avail this feature.
The initiative is powered by Mastercard, Visa, RuPay, and National Payments Corportation of India (NPCI).
Banks that are a part of the initiative are Axis Bank, Bank of Baroda, Bank of India, Citi Union Bank, DCB, Karur Vysya Bank, HDFC Bank, ICICI Bank, IDBI Bank, RBL Bank, State Bank of India, Union Bank of India, Vijaya Bank and Yes Bank.
The feature is not immediately available and will be rolled out in the next couple of weeks.