Metros, bus operators can issue prepaid cards now

Balance in the instrument should not exceed Rs 2,000.

The operators of mass transit system (MTS) like Mumbai Metro, Delhi Metro, Indian Railways and even local road transport services can now issue their pre-paid cards, giving a big relief to the commuters who face problems while purchasing tickets.

The Reserve Bank of India (RBI) on Thursday said that mass transit system operators can issue a pre-paid card to a customer who transfers money to the card that can be swiped on machines instead of standing in long queues to purchase travel tickets. Releasing the final guidelines, the RBI has said that the balance in the prepaid instrument issued by the MTS should not exceed Rs 2,000 at any point of time. Also, MTS would not be allowed to refunds cash that is stocked in the PPI. “The card should have a minimum validity of six months from the date of issue,” the RBI said.

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This new category of semi-closed PPIs has been introduced taking into account the requests received from various segments, including providers of mass transit services, such as metro train and road transport services, indicating the need for PPIs catering to the requirements of this segment to enhance commuter convenience, the RBI said.

The PPI-MTS will enhance commuter convenience and will also facilitate the migration to electronic payments in line with the country’s vision of moving to a less-cash society. Such PPIs will be reloadable instruments subject to an outstanding limit of Rs 2,000 at any point of time. Apart from the mass transit system, such PPI-MTS can be used at other merchants whose activities are allied to or are carried on within the premises of the transit system.