“Common Prepaid Payment Instruments For Travel Across Country Soon”: RBI

Share this news

The Reserve Bank of India (RBI) has granted permission to licenced bank and non-bank prepaid payment instrument (PPI) issuers to issue cards for payment across various public transit networks. The latest move is expected to make commuters’ travel plans more easy and hassle-free, as they will be able to travel between platforms such as buses, metro, and trains while also paying for parking fees with a single card.

The official statement reads, “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.”

These instruments will be referred to as PPI-MTS (prepaid payment instruments—mass transport systems).

As a result, the RBI has changed its master directions.

Key Provisions Of PPI-MTS

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.

6. The outstanding amount in these PPIs will not exceed INR 3,000 at any point in time.

7. These PPIs can have perpetual validity, i.e., the provisions of validity and redemption given in Section 13 of this master direction will not apply to PPI-MTS.

8. Cash withdrawal, refund, or funds transfer will not be permitted in such PPIs.