The government is planning to upgrade the QR code for UPI in such a manner that it can include the GST component and show the same separately on the interface. This would make it possible for the government to formulate fiscal incentives for digital payments.
Latest Update
19th December 2022
- Under the RuPay Debit Card and low-value BHIM-UPI incentive scheme of the Central Government, banks are paid incentives that are not taxable. Read more
Consequently, The National Payments Corporation of India (NPCI) is working on UPI to make this feature possible. According to experts, when this feature would be implemented there would be no limit to the innovation that could take place. Moreover, the information that is provided to the merchant and customer can grow to a great extent.
UPI (Unified Payments Interface) has tectonically increased by 250% in the previous nine months. Speaking at the event organized by Paytm to launch an upgraded version of its soundbox, Paytm founder Vijay Shekhar Sharma said that in the previous 18 months, the company has traded/sold 9 lakh point-of-sale (PoS) devices and is further planning to upgrade 50 lakh merchants for the purpose of accepting contactless payment over smartphones and IoT (internet of things) devices.
Visa’s India chief T R Ramachandran in the same event opined that “With 25 billion IoT devices in the world, the scope for contactless payments has increased. Over 50 countries have increased their limit for contactless payments and the RBI has also revised the limit after analyzing years of fraud data.”
In response to proposed licenses for the new umbrella entities put forth by the RBI, Ramachandran said that “The heterogeneous nature of the Indian market meant that one size does not fit all. There have been under-penetrated segments in digital payments, such as B2B transactions and cross-border remittances. It requires a thousand flowers to bloom to satisfy the appetite of India.”
