1. Home
  2.  |  
  3. Economy Current Affairs  |  

RBI proposed to introduce PPI for Mass Transit Systems

May 29, 2015 16:11 IST

The Reserve Bank of India on 28 May 2015 proposed to introduce Prepaid Payment Instruments (PPI) for Mass Transit System (PPI-MTS).

These PPI-MTS will be semi-closed instruments that will be used facilitate the migration to electronic payments in line with the country’s vision of moving to a less-cash society.

Further, it can also 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 subjected to an outstanding limit of 2000 rupees at any point of time.

Main features of Prepaid Payment Instruments (PPIs)

• The semi-closed PPIs will be issued by the mass transit system operator (PPI- MTS) who will be authorised under the Payment and Settlement Systems Act, 2007.
• The PPI- MTS will necessarily contain the Automated Fare Collection application related to the transit service.
• Such PPI-MTS can be used by other merchants whose activities are allied to or are carried on within the premises of the transit system only.
• The PPI- MTS issuer will ensure on-boarding of merchants following due procedure applicable to any other PPI issuer.
• The PPI-MTS will have minimum validity of six months from the date of issue.
• The issuer may decide upon the desired level of Know Your Customer (KYC), if any, for such PPIs.
• No cash-out or refund will be permitted from these PPIs.
• Funds transfer under Domestic Money Transfer (DMT) will also not be applicable to these PPIs.

The RBI proposed to introduce PPIs after it received requests from various segments, including providers of mass transit services and road transport services, indicating the need for PPIs catering to the requirements of this segment to enhance commuter convenience.

Now get latest Current Affairs on mobile, Download # 1  Current Affairs App

Is this article important for exams ? Yes27 People Agreed
Read more Current Affairs on: Prepaid Payment Instrument , Mass Transit System , RBI

Register to get FREE updates

    All Fields Mandatory
  • (Ex:9123456789)
  • Please Select Your Interest
  • Please specify

  • ajax-loader
  • A verifcation code has been sent to
    your mobile number

    Please enter the verification code below

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK