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ARTICLE · 08 MARCH 2024

Mass Transit Systems PPI: Facilitating Seamless Public Transport Payments

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The mass public transport system in India is one of the busiest in the world, catering to over 36.5 million commuters each day across the country.

IndiaFinance and Banking
Sarthak Sarin
Sarthak Sarin
Achint Kaur
Achint Kaur
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The Reserve Bank of India (RBI) has amended the Master Directions on Prepaid Payment Instruments (MD-PPIs) to permit authorised banks and non-banks to issue prepaid payment instruments (PPIs) for enabling digital payments across multiple means of public transport in the country (Amendment).

The mass public transport system in India is one of the busiest in the world, catering to over 36.5 million commuters each day across the country. Allowing PPI as a payment mode for public transit users across the nation is a much-awaited transformational move by RBI, and definitely a vital step in the manifestation of India's aspiration of becoming a truly digital economy.

Background

On 27 August 2021, RBI had issued the MD-PPIs which prescribe, among other things, the types of PPIs which banks and non-banks can issue after securing the requisite approval from RBI.

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