RBI allows Prepaid Payment Instruments across public transport systems
Mumbai, Feb 23: The Reserve Bank of India (RBI) on Friday issued direction to permit authorised banks and non-banks to issue PPIs for making payments across various public transport systems with immediate effect.
Public transport systems across the country cater to a multitude of commuters on a daily basis. “The order has been issued to provide convenience, speed, affordability, and safety of digital modes of payment to commuters for transit services,” the RBI said.
The central bank said that the MD-PPIs has been updated by revising paragraph 10.2 thereof.
The master direction on Prepaid Payment Instruments (MD-PPIs) which prescribes, inter alia, the various types of PPIs which banks and non-banks can issue after obtaining necessary approval from RBI was first issued on Aigust 27, 2021 and then amended from time to time.