Bipin Preet Singh: Industry welcomes the recent amendments by RBI Allowing banks and non-banks to issue Prepaid Payment Instruments for public transport
FinTech BizNews Service
Mumbai, February 24, 2024: The Payments Council of India welcomes the recent amendment made by the Reserve Bank of India (RBI) to the Master Direction on prepaid payment instruments (PPI), allowing both banks and non-bank PPI issuers to provide these instruments for public transport services.
In an official announcement, the RBI stated, "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 acknowledged that, across India, public transport systems cater to a multitude of commuters on a daily basis. The directive is effective immediately. Originally introduced in 2021, the Master Directions on PPIs define these instruments as facilitators for purchasing goods and services, accessing financial services, remittance facilities, and more.
"The RBI's decision to authorize both banks and non-banks to issue PPIs for public transport payments is a welcome move. This marks a pivotal moment in our journey towards modernizing transit systems. By embracing digital payment solutions, we not only enhance convenience but also pave the way for a more efficient, accessible, and forward-looking transportation experience for all," said Bipin Preet Singh, Co-Founder & CEO of MobiKwik and Co-Chair, PPI Committee, Payments Council of India.
This strategic step aligns with the broader vision of advancing digital payments infrastructure and fostering inclusive growth in India's financial landscape.