BharatQR - Meaning, Types, Objectives

By : Neha Dhyani

Updated : Mar 16, 2022, 8:54

BharatQR is an integrated payment system in which payments are made by scanning a single unified QR code (Quick Response Code, a mechanical-readable optical label). Under the prescribed rule of the Reserve Bank of India (RBI), BharatQR was created by the National Payment Corporation of India (NPCI) along with Visa, MasterCard, and American Express in September 2016.

Bharat QR was officially launched in India on 20th February 2017 by R. Gandhi (Deputy Governor of the Reserve Bank of India). Its Payment Vision came into active effect in 2018 after the implementation of demonetisation.

BharatQR Objectives

The Government of India introduced the BharatQR code-based payment solution to facilitate ample coverage in a short period, promoting Digital India and a cashless mode of payment with the following advantages:

  • To provide a common interoperable QR code solution
  • To bring a new push-based payment solution
  • To develop a common standard for QR codes by NPCI in collaboration with the ICS (International Cards Schemes)
  • To avail a wider acceptance of payments from BHIM-UPI, RuPay cards, Visa, MasterCard, and American Express.
  • To facilitate customers to make payments without having to carry a real debit or credit card.
  • To provide an easy interface for customers to pay the required amount from one account to another in just a fraction of seconds. The money sent through BharatQR is deposited straight into the user's associated bank account.
  • To minimise the risk of data theft or security issues via fiddled or cyber-compromised point of sale devices.

BharatQR Types

Two types of Bharat QR Codes have been formulated. They are as follows:

BharatQR Static code: Under the Static QR Code, the customer scans the QR code and then enters the amount, followed by entering the PIN to make a payment to the vendor or transfer money to others.

BharatQR Dynamic code: Under the Dynamic QR code, the customer can simply make the payment after scanning and putting in their PIN as it generates a new QR code for every real-time transaction, where the vendor's name and the amount to be paid are already mentioned.

BharatQR Parties Involved

The BharatQR Code Payment System consists of three parties. They are as follows:

  • Acquirer –The Acquirer is the one who manages merchant onboarding, merchant management, and merchant solutions through the mobile app. Currently, 28 Banks are active on BharatQR as Acquirers.
  • Issuer – The Issuers are the ones that deal with consumer onboarding and consumer solutions through the mobile app. At present, 32 banks are active on BharatQR from the Issuing end.
  • Transaction processing Engine (NPCI) - It is the end transaction routing engine of the payment system.

BharatQR Additional Provisions

The creators (NPCI, Mastercard, and Visa) have enabled the provisions for three additional fields to make Bharat QR payments. They are:

  • Bank Account and IFSC (Indian Financial System Code)
  • Unified Payments Interface (UPI)
  • Aadhaar

Note: Currently, at the operational level, BharatQR is only supported on Android and iOS devices, unlike the UPI method, which can be used on phones through USSD.

BharatQR is a digital transaction concept that will employ the QR code method for payments across retail outlets. It is the world's first interoperable payment acceptance platform launched in India.

After the initial success of Bharat Interface for Money (BHIM), BharatQR is built to enhance the government's cashless drive. The government wants BharatQR to become the next important digital payment option (after Card Payments and UPI).

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FAQs on BharatQR

Q1. When was BharatQR launched?

Ans. BharatQR was launched on 20th February 2017.

Q2. When was the BharatQR Payments Vision established?

Ans. The BharatQR Payments Vision was established in 2018.

Q3. Who launched BharatQR?

Ans. R. Gandhi, the Deputy Governor of the Reserve Bank of India, launched BharatQR.

Q4. BharatQR belongs to which department?

Ans. BharatQR belongs to the National Payment Corporation of India (NPCI) of the Government of India.