The Reserve Bank of India ( RBI ) revised the directives, now explicitly permitting authorized banks and non-bank PPI issuers to introduce specialized Prepaid Payment Instruments ( PPI ) tailored for transactions within diverse public transport networks across the nation.
In accordance with the Master Directions CO.DPSS.POLC.No.S-479/02.14.006/2021-22 dated August 27, 2021, concerning Prepaid Payment Instruments (MD-PPIs) and subsequent amendments, which delineate the types of PPIs that banks and non-banks can issue with RBI approval, significant strides have been made to enhance payment options in public transport systems nationwide.
With public transport networks serving a diverse array of commuters daily, ensuring convenience, speed, affordability, and safety in digital payment modes for transit services has become imperative.
The Authorized bank and non-bank PPI issuers have been granted permission to issue PPIs for facilitating payments across various public transport systems. This pivotal decision has been facilitated by the revision of paragraph 10.2 of the MD-PPIs, stated RBI.
These directives are issued pursuant to Section 18, in conjunction with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). They are immediately effective, signalling a significant step forward in modernising payment mechanisms within the public transportation domain.
By enabling PPIs for public transport payments, commuters stand to benefit from greater flexibility, ease of use, and security in conducting their transit transactions. This development is particularly significant in light of the increasing reliance on digital payment solutions and the growing demand for seamless, contactless payment experiences.
As these instructions take effect immediately, stakeholders in the public transport sector, including commuters, service providers, and payment solution providers, are encouraged to adapt to these changes swiftly. This proactive approach is essential for ensuring a smooth transition and maximizing the potential benefits of PPIs in public transport payments.
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