What changed
RBI amended the Master Direction on PPIs (MD-PPIs) to allow authorised PPI issuers to issue instruments specifically for payments across various public transport systems. This expands the use case of PPIs beyond existing categories.
What it means for you
Banks and non-bank PPI issuers can now tap into the high-volume transit segment, offering commuters a faster, safer digital payment option. This could drive PPI issuance volumes and transaction revenues, but issuers must ensure compliance with existing KYC and interoperability norms.
What you must do
- Review and update your PPI product suite to include transit-specific instruments.
- Ensure compliance with all existing MD-PPI requirements, including KYC and interoperability.
- Coordinate with public transport operators to integrate PPI acceptance.
- Monitor RBI circulars for any further operational guidelines on transit PPIs.
Who it affects
Banks issuing PPIs, Non-bank PPI issuers, Public transport operators, Commuters using transit services
Can we issue PPIs for all public transport systems now?
Yes, RBI has permitted authorised bank and non-bank PPI issuers to issue PPIs for payments across various public transport systems, effective immediately.
Do we need separate RBI approval for transit PPIs?
The circular does not specify a separate approval process; existing PPI authorisation should suffice, but issuers must comply with all MD-PPI provisions.