To promote digital payment at a wide scale, the Indian government is planning to mandate a quick response (QR) code based payment method option using Unified Payments Interface (UPI) at all shops.

The GST council has already given a go-ahead to the proposal. The govt has for the project roped in NPCI to work on a necessary mechanism to launch it nationally.

The move will also provide GST benefit to both shops and consumers, according to government official quoted by sources

The prime idea behind the proposal of mandatory QR code-based payment is to make digital payment more popular and bring a behavioral change in the ecosystem. The advantages of QR code payment are, it allows a consumer to buy goods and services without the need to swipe plastic cards.

The process also records necessary information related to the transactions. Data loss and security breach are minimized. The QR code may also be introduced on invoices, added the sources.

From Sources, The details of the plans are being chalked out at the official level after the GST Council gave it a go-ahead before the ongoing Lok Sabha elections, the report said, adding that the National Payments Corporation of India (NPCI) will be roped in to roll out the mandate nationally.

The move to introduce the payment mechanism for business-to-consumer (B2C) transactions is to bring about a behavioural change, the report quoted sources as saying. In the medium to long-term, QR codes may also be introduced on invoices, sources added.

In order to promote digital payments nationally, the finance ministry is working out the rules and a decision on putting together digital payment architecture is expected after the general elections, the report added.