The RBI has authorized Banks to issue PPIs for making payments across various Public Transport Systems by amending the Master Direction on Prepaid Payment Instruments.
Reetu | Feb 23, 2024 |
RBI authorizes Banks to issue PPIs for making payments across various Public Transport Systems
The Reserve Bank of India (RBI) has authorized Banks to issue PPIs for making payments across various Public Transport Systems by amending the Master Direction on Prepaid Payment Instruments.
This refers to the Master Directions CO.DPSS.POLC.No.S-479/02.14.006/2021-22 dated August 27, 2021, on Prepaid Payment Instruments (MD-PPIs) (as amended from time to time), which specify, among other things, the various types of PPIs that banks and non-banks can issue after obtaining the necessary RBI approval/authorization.
Public transport systems across the country cater to a multitude of commuters on a daily basis. To provide commuters with the ease, speed, affordability, and security of digital modes of payment for transit services, it has been determined to allow authorised bank and non-bank PPI issuers to issue PPIs for making payments across various transport systems. The MD-PPIs were updated by revising paragraph 10.2.
These instructions are issued in accordance with Sections 18 and 10 (2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). These instructions go into effect immediately.
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