RBI allows banks to issue pre-paid payment instruments for payments across public transport networks

The Reserve Bank of India (RBI) has introduced an amendment to its master directions on Prepaid Payment Instruments (PPIs). The revised rules now allows authorised banks and non-bank PPI issuers to issue Prepaid Payment Instruments (PPIs) explicitly designed for payments across diverse public transport systems across the country.

This will enhance the ease, speed, affordability, and security of digital payment methods for commuters utilising public transit services, RBI said.

Public transport systems serve as a lifeline for a vast number of commuters on a daily basis, and the move aims to provide a seamless, efficient, and secure digital payment experience for transit services, it said.