To reduce the use of cash in the economy, the government should provide incentives to promote transactions between customers through QR (Quick Response) code. It has been said in a Reserve Bank report. Payments can be made easily by mobile at various sales centres and shops through QR codes.
What is QR Code?
QR codes can store enough information in them. It is a kind of barcode that is read through a machine. A Japanese company ‘Denso Wave’ invented the QR code in the year 1990. QR code payment system in India works broadly through three ways – Bharat QR, UPI QR and proprietary QR.
Reserve Bank’s committee gave suggestions
The Reserve Bank committee, headed by Professor Emeritus DB Pathak of IIT Bombay, has given many other suggestions in this regard. It has said that traders who accept payments electronically should also be given tax incentives. This committee, constituted to analyse QR codes, has said that the government should also introduce incentive schemes to promote transactions through QR codes in the country and to make it attractive among the people.
These benefits will be from QR code
One can make electricity, water, petrol, diesel, grocery goods, travel and many other payments through the QR cord. This report submitted to the Reserve Bank stated that paper-based QR codes are quite cheap and cost effective. It also does not require maintenance. The Reserve Bank has asked people and other concerned parties to send their suggestions and comments on this report by 10 August ‘2020.