The Reserve Bank of India (RBI) amended the Master Direction on Prepaid Payment Instruments (PPI), to allowed authorised bank and non-bank PPI issuers to issue PPIs for making payments across various public transport systems.

Banking & Finance

The Reserve Bank of India (RBI) amended the Master Direction on Prepaid Payment Instruments (PPI), to allowed authorised bank and non-bank PPI issuers to issue PPIs for making payments across various public transport systems. The apex bank noted that, across India, public transport systems cater to a multitude of commuters on a daily basis. 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.


      In 2021, the Master Directions on PPIs were originally issued by the RBI.

      PPIs that require RBI approval/authorisation before issuance are classified under two types, small PPIs, and full-KYC PPIs.

     

 

     


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