RBI proposes to introduce PPI for Mass Transit Systems; seeks Comments on Draft Instructions

May 28, 2015 / 17:05 IST

The Reserve Bank of India has today placed on its website for comments and feedback the draft guidelines on Prepaid Payment Instruments (PPI) for Mass Transit System (PPI-MTS). Comments may be e-mailed or sent by post to the Chief General Manager, Department of Payment and Settlement Systems, Reserve Bank of India, Central Office, 14th Floor, Shahid Bhagat Singh Marg, Mumbai-400 001 on or before June 15, 2015.

Background

The Reserve Bank of India has been receiving requests from various segments, including providers of mass transit services, such as, metro train and road transport services, indicating the need for PPIs catering to the requirements of this segment to enhance commuter convenience. It was felt that a separate category of semi-closed PPI for mass transit systems which handle a large number of small value cash payments will facilitate the migration to electronic payments in line with the country’s vision of moving to a less-cash society.

The PPI-MTS can be used within the mass transit systems and will have a minimum validity of six months from date of issue. Such PPIs will be reloadable instruments subject to an outstanding limit of ₹2,000/- at any point of time.

Alpana Killawala Principal Chief General Manager

RBI proposes to introduce PPI for Mass Transit Systems; seeks Comments on Draft Instructions