The central government has been taking many steps to eliminate fears related to digital transactions in order to ensure higher adaptability. The Nandan Nilekani-led RBI committee has also been planning to recommend making all government payments to citizens digital.
As per the data released by National Payments Corporation of India, in the month of April 2019, the government-owned Unified Payments Interface (UPI) had recorded 781.79 million transactions. In fact, as per NITI Aayog’s Digital Payments report (2018 edition), India’s digital payments industry is anticipated to grow to $1 trillion by 2023.
In order to achieve the digitisation goal, the central government is now likely to mandate a QR code-based payment option using UPI at all shops and establishments for the people looking to transfer money digitally.
As per the reports, to promote digital payments as the preferred option, both the customers and shopkeepers will be eligible for GST benefits. In fact, the report also said that the move follows a go-ahead by GST Council before the elections.
At present, the details of the payment mechanism are being worked out with National Payments Corporation of India to roll it out at a national level.
Reports also say that the government will make it mandatory for establishments beyond a certain threshold to offer QR payment option. The outline of enforcing the order has been finalized while the remaining work is likely to happen post the elections.
The main reason behind this step is to introduce a payment mechanism for B2C transactions. In fact, it is also anticipated that in the long term, the QR code will be introduced in invoices too.