Common prepaid payment instruments for travel across the country soon, says RBI
RBI) has permitted authorised bank and non-bank and non-bank prepaid payment instrument (PPI) issuers to issue cards for making payments across various public transport systems. The latest move is set to make travel plans for commuters more convenient and hassle-free as they will be able to travel across platforms such as bus, metro, train and even pay for the parking fee by using just one card. “Public transport systems across the country cater to a multitude of commuters on a daily basis.
To provide convenience, speed, affordability, and safety of digital modes of payment to commuters for transit services, it has been decided to permit authorised bank and non-bank PPI issuers to issue PPIs for making payments across various public transport systems," reads the statement. ALSO READ: Mint Explainer: What RBI's commercial credit card diktat is all about These instruments will be referred to as PPI-MTS (prepaid payment instruments-mass transit systems) Accordingly, RBI has updated its master directions. 1.
Banks and non-banks are permitted to issue these prepaid payment instruments. 2. These instruments will carry the automated fare collection application with functionality of transit services, toll collection as well as parking.
3. These prepaid instruments will be enabled only for payments across various modes of public transport such as metro, buses, rail and waterways, tolls and parking. 4.
These prepaid instruments do not need any KYC verification of holders. 5. These PPI will be reloadable in nature; 6.
The outstanding amount in these PPIs will not exceed ₹3,000 at any point of time. 7. These PPIs can have perpetual validity, i.e., the provisions of validity and redemption given in Section 13 of this master direction
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