Centre sets 5.5 mn PoS machine installation target; deadline September

By: | Published: March 31, 2017 3:38 AM

The government has set a target for installation of 5.5 million point-of-sale (PoS) machines by September, AP Hota, managing director and CEO, National Payments Corporation of India (NPCI), said on Thursday.

Taking a cue from non-bank wallet players, Reliance Retail will offer a 5% cash back on UPI-based payments throughout April.

The government has set a target for installation of 5.5 million point-of-sale (PoS) machines by September, AP Hota, managing director and CEO, National Payments Corporation of India (NPCI), said on Thursday.

“Now it is 2.5 (million), you can say. Another three million has to come. One million traditional PoS, one million QR code (-enabled PoS) and one million Aadhaar (-enabled PoS),” Hota said, adding that the government also plans to assign bank-wise targets in order to meet the September deadline.

Hota was speaking on the sidelines of an event to announce the launch of a pilot for Unified Payments Interface (UPI)-enabled payments at all outlets of Reliance Retail. The new in-store payment solution will involve building of a QR code infrastructure on top of existing PoS machines. The QR code will contain the merchant’s account information and will also reflect the transaction amount, as entered by the merchant.

The payment capability has been developed by Bangalore-based Innoviti Payment Solutions and Axis Bank will offer process support to the system. The facility will initially be rolled out in 200 Mumbai outlets of Reliance Retail and then be extended to all other outlets across the country.

Taking a cue from non-bank wallet players, Reliance Retail will offer a 5% cash back on UPI-based payments throughout April.

Hota said the solution will be extended to other organised retail players over time.

“In retail stores, they have got a sales computer system and also the payment acceptance system. They need to really talk to each other. Innoviti will be deploying in all of the retail stores. We are in talks with another player, Pine Labs, for in-store UPI payments,” he said.

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BoM UPI fraud

On recent fraudulent UPI transactions affecting BoM, Hota said the fraud was possible because of a bug in the bank’s system. The bug had resulted in the bank sending messages to NPCI indicating successful transactions even in cases where the core banking system had rejected a transaction. The bank had had incurred a loss of `25 crore as a result of it. He said the process of on-boarding banks on UPI platform has been made more stringent after the incident. “We are not allowing any bank to join UPI unless they have a thorough reconciliation process and have audited their package by best of audit professionals.

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