RBI Allows Banks, Non-Banks To Issue Public Transport Payment Instruments
Earlier, in its master directions for PPI issuers, RBI had said that PPI issuers will need to get permission before launching a mass-transit payment instruments.
The Reserve Bank of India said on Friday that authorised banks and non-banks can start issuing public transport payment instruments. The guidelines apply to bank and non-bank prepaid payment instrument issuers.
"Public transport systems across the country cater to a multitude of commuters on a daily basis. To provide convenience, speed, affordability, and safety of digital modes of payment to commuters for transit services, it has been decided to permit authorised bank and non-bank PPI issuers to issue PPIs for making payments across various public transport systems," the regulator said in a circular.
Earlier, in its master directions for PPI issuers, RBI stated that authorised issuers will need to obtain permission before launching any mass-transit payment instruments. With the current circular, previous guidelines will be modified.
