The Reserve Bank of India (RBI) has directed authorised banks and non-banks to issue Prepaid Payment Instruments (PPIs) for public transport payments. This move aims to enhance convenience, speed, affordability, and safety of digital payment methods for commuters across various transport systems.
Public transport systems in India are vital for daily commuters. The RBI’s decision to allow PPIs for transit services will streamline payment processes and promote digital transactions. The MD-PPIs has been updated through the revision of paragraph 10.2 to facilitate this initiative.
The master direction on Prepaid Payment Instruments (MD-PPIs) outlines the types of PPIs that banks and non-banks can issue after obtaining RBI approval. Initially issued on August 27, 2021, the MD-PPIs has undergone amendments to adapt to the evolving payment landscape. This directive will impact the way commuters make payments for public transport services, making transactions easier and more secure.
