The Reserve Bank has given permission for banks and non-banking institutions to create pre-paid instruments (PPIs) for paying for rides on public transportation systems.
Pre-paid Instruments” (PPIs) refers to a category of financial instruments that are pre-loaded with a specific amount of money and can be used for making transactions. These instruments are typically used for payments and purchases and are different from traditional instruments like credit cards and debit cards.
Increased Payment Options
With these new instruments, people can pay for their public transport tickets in more ways than just using cash.
Benefits for Commuters
The RBI mentioned in a notification that these instruments will offer commuters the advantages of digital payments, including convenience, speed, affordability, and safety.
Importance of Public Transport
The notification also highlighted the significance of public transport systems in serving a large number of commuters every day across the country.
