look news india
Passengers who travel by public transport. There is a good news for them. Now they will be able to easily pay for public transport like rail, bus, toll, parking etc. Reserve Bank of India (RBI) has given big relief. Banks and non-banking financial institutions have been permitted to issue PPIs i.e. prepaid instruments for payment for various public transport systems. According to the Reserve Bank, this step has come into effect with immediate effect.
There will be other options besides cash payment
Payment under PPI or prepaid card is made first. Now those traveling by public transport will have other options to pay the fare apart from cash payment. They can pay digitally for rail, bus, waterways, toll and parking services through prepaid wallets and cards.
RBI has said in the notification that the approval has been given to issue PPIs capable of making payments for the public transport system to provide security, better convenience, instant payment and affordable service of digital payments to the passengers. Public transport systems across the country serve a large number of passengers every day.
What is PPI?
PPI is a financial instrument. In this, goods or services can be paid for with the help of deposited amount. Money can be deposited in PPI with the help of credit card, debit card, bank account. PPIs will be issued by banks and NBFCs. Banks can issue PPI after getting approval from RBI. A PPI holder is a person who purchases PPI from a PPI issuer. At present there are three types of PPI in our country: Semi Closed System PPI, Closed System PPI and Open System PPI.
How will PPI help?
1. Banks/NBFCs will issue PPI after approval from RBI.
2. The PPI will have automated fare collection applications related to transit service, toll and parking.
3. With PPI you will be able to pay for public transport fares like metro, bus, rail and waterways, toll and parking.
4. PPIs can be issued without KYC verification.
5. After this money can be deposited in PPI.
6. The outstanding amount in PPI will not exceed Rs 3,000 at any time.
7. PPI will have permanent validity. Cash withdrawal, refund or fund transfer will not be allowed in PPI.